Standard & Reduced RatesReverse Charge (B2B)Input vs Output Tax Offset

VAT Calculator: Add or Remove VAT (UK, EU & International)

Add VAT to a net price, or work out how much VAT is included in a gross price — with UK, EU and international rates, and an input-tax offset for VAT-registered businesses.

Rates checked Sep 2026

VAT Calculation Parameters

Jurisdiction, calculation direction and transaction type

Calculation Direction & Mode
Currency: GBP (£)
£GBP
Presets:
%
Transaction Profile & Tax Treatment
£
VAT Settlement AssessmentLiability and settlement breakdown
—
Total Gross Invoiced Amount (Customer Pays)
—
Net Value: —VAT: —
Input vs Output Tax Offset Ledger—
Output VAT (collected on this sale)—
Input VAT (reclaimable on business purchases)—
Net VAT Payable—
Reverse Formula & Factor Check——
—
Benchmark Matrix

UK, EU & International VAT Rate Benchmark (2026)

Headline rates by country. Which goods qualify for reduced rates varies — check the tax authority's guidance.

Filter:
JurisdictionISO CodeStandard RateReduced Rate(s)Super-Reduced / ZeroB2B Reverse Charge

The Mechanics of Input Tax Credits (Reclaimable VAT)

VAT is a multi-stage consumption tax designed to fall on the final consumer. VAT-registered businesses avoid tax on tax by deducting the input VAT paid on business purchases from the output VAT charged to customers, and paying (or reclaiming) the difference.

Valid invoices: to reclaim input VAT you normally need a proper VAT invoice showing the supplier's VAT registration number.

Exempt supplies: businesses that also make VAT-exempt sales may only be able to reclaim part of their input VAT (partial exemption).

B2B Reverse Charge on Cross-Border Services

For many cross-border business-to-business services, the reverse charge shifts the obligation to account for VAT from the supplier to the business customer. The supplier invoices without VAT and notes that the reverse charge applies; the customer records both output and input VAT on its own return.

Check the VAT number: suppliers should verify an EU customer's VAT number through the EU VIES system before invoicing without VAT.

UK returns: the reverse-charged VAT goes in Box 1 (output) and, where recoverable, Box 4 (input), so the net effect is usually nil.

Adding vs. extracting VAT

These are two different calculations that people often mix up. If you have a price before VAT and want to know the final price, you're adding VAT — multiply the net price by (1 + VAT rate). If you have a final price that already includes VAT and want to know the pre-VAT amount, you're extracting VAT — dividing by (1 + VAT rate), not simply subtracting the VAT percentage from the total.

This distinction matters because naively subtracting the VAT percentage from a gross price gives an incorrect (too low) net amount — the correct extraction requires dividing, since the VAT percentage in extraction mode applies to the net amount, not the gross amount.

By Suhaib Hassan · Rates verified 27 Sep 2026 · How CalculatePilot verifies formulas →

VAT rates vary by country and category

Standard VAT rates differ significantly by country — for example, the UK standard rate is 20%, while other countries use different standard and reduced rates for specific categories like food, children's items, or books. Some goods and services may be zero-rated or exempt entirely.

Always verify the correct VAT rate for your specific product category and country, since applying the wrong rate is one of the most common invoicing errors for businesses working across borders. For US sales tax, use the Sales Tax Calculator.

Frequently asked questions

Can I just subtract the VAT percentage from a gross price to get the net price?

No — that gives an incorrect result. To correctly extract VAT from a gross price, divide by (1 + VAT rate) rather than subtracting the percentage directly, since the VAT rate applies to the net amount, not the gross total.

Do all products have the same VAT rate?

No — many countries apply reduced rates or exemptions to specific categories like food, children's clothing, or books, alongside a standard rate for most other goods and services.

How much is VAT in the UK?

The standard UK VAT rate is 20%. A reduced rate of 5% applies to some goods like domestic energy and children's car seats. Some goods are zero-rated (0%) including most food and children's clothing.

How do I calculate VAT?

To add VAT: multiply the price by 1.20 (for 20% VAT). To find the VAT amount in a VAT-inclusive price: multiply the gross price by 1/6 (for 20% VAT). This calculator handles both automatically — just enter the price and select whether to add or remove VAT.

Complementary Financial Calculators

Tax and pricing tools for businesses and freelancers.

View all tools
For website owners

Want this calculator on your own website?

Embed it in one line of code. Keep it free with a small CalculatePilot attribution link, or go white-label: your brand, no attribution, one license for all your domains.

  • All 159 calculators, unlimited embeds
  • Works on WordPress, Webflow, Squarespace, Wix and plain HTML
  • Runs in your visitor's browser, so nothing is sent to a server
  • License key emailed automatically after checkout, cancel anytime
$7.99 / month
or $89.99 / year · white-label Pro
Get the white-label license Embed free with attribution