How VAT works
VAT (Value Added Tax) is a consumption tax added to most goods and services. Sellers add it to their net price; the customer pays the gross (VAT-inclusive) price, and the seller passes the VAT to the tax authority.
Common VAT rates
| Country | Standard rate |
|---|---|
| United Kingdom | 20% |
| Germany | 19% |
| France | 20% |
| Spain / Netherlands | 21% |
| Italy | 22% |
| Ireland | 23% |
For guidance only — confirm the correct VAT rate and rules for your products and country with the relevant tax authority.
Frequently asked questions
How do I calculate VAT?
To add VAT, multiply the net amount by the VAT rate and add it on (e.g. £100 × 20% = £20 VAT, £120 total). To remove VAT from a gross price, divide by 1 + the rate (e.g. £120 ÷ 1.20 = £100 net). This calculator does both.
What is the VAT rate in the UK?
The standard UK VAT rate is 20%. Reduced rates of 5% and 0% apply to some goods. Pick your country/rate above or enter a custom rate.
How do I remove VAT from a price?
Switch the toggle to “Remove VAT”, enter the VAT-inclusive (gross) price, and the calculator shows the net amount and the VAT portion.