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.
By Suhaib Hassan · Updated · How we verify formulas
——UK, EU & International VAT Rate Benchmark (2026)
Headline rates by country. Which goods qualify for reduced rates varies — check the tax authority's guidance.
| Jurisdiction | ISO Code | Standard Rate | Reduced Rate(s) | Super-Reduced / Zero | B2B 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
Adding VAT and extracting VAT are two different calculations that people often mix up. If you have a price before VAT and want the final price, you are adding VAT. Multiply the net price by (1 + VAT rate). If you have a final price that already includes VAT and want the pre-VAT amount, you are extracting VAT. Divide by (1 + VAT rate). Do not simply subtract the VAT percentage from the total.
This matters because subtracting the VAT percentage from a gross price gives a net amount that is too low. The VAT percentage applies to the net amount, not the gross amount, so extraction requires division.
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%. Other countries use different standard rates and reduced rates for 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 product category and country. 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.
How to use this VAT calculator
- Choose a direction. Choose Net to Gross to add VAT to a price, or Gross to Net to extract the VAT from a price that already includes it.
- Enter the amount. Enter the net amount before VAT, or the gross amount if you are extracting VAT, or tap a price preset.
- Choose the jurisdiction and rate. Choose the country and the rate tier, such as standard or reduced. The default is the UK standard rate of 20%.
- Choose the transaction type. Choose B2C domestic retail, B2B registered, or cross-border B2B where the reverse charge applies.
- Read the VAT and the total. Read the net value, the VAT amount and the gross total, along with the reverse formula check.
Worked example with the calculator defaults
The calculator opens on adding VAT to a £2,500 net price at the UK standard rate of 20%, for a domestic retail sale.
- Adding VAT: £2,500 × 1.2 = £3,000, so the VAT is £500.
- Extracting VAT: £3,000 ÷ 1.2 = £2,500 before VAT.
- Shortcut: at 20%, the VAT in a VAT-inclusive price is exactly 1/6 of it. £3,000 ÷ 6 = £500.
- The wrong way: subtracting 20% from £3,000 gives £2,400, which is £100 too low.
Key takeaways
- This VAT calculator adds or removes VAT. To add VAT, multiply by (1 + rate). To remove it, divide by (1 + rate).
- Never subtract the VAT percentage from a gross price. At 20%, VAT is exactly 1/6 of the VAT-inclusive price, not 20%.
- On the defaults, £2,500 plus 20% VAT is £3,000, and the VAT is £500.
- VAT rates and reduced-rate categories vary by country. For cross-border B2B services the reverse charge usually applies, so check HMRC or your tax authority.
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.
How much is £2,500 plus VAT?
At the UK standard rate of 20%, the VAT on £2,500 is £500, so the total is £3,000. That is £2,500 × 1.2.
How do I remove VAT from £3,000?
Divide by 1.2 at the 20% rate. £3,000 ÷ 1.2 = £2,500 before VAT, so the VAT is £500. Subtracting 20% instead would give £2,400, which is wrong.
What is the VAT reverse charge?
On cross-border B2B services, the customer accounts for the VAT instead of the supplier. Services imported by a registered business are usually reverse-charged. Check HMRC guidance for your supply.
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