How to calculate VAT

VAT is a percentage of the net price. Adding it is one multiplication. Taking it back out of a gross price is a division, and that is where most mistakes happen.

Updated

Add VAT to a net price

Multiply the net price by 1 plus the rate as a decimal. At 19 percent that is 1.19.

gross = net x (1 + rate / 100)

100.00 x 1.19 = 119.00
VAT = 119.00 - 100.00 = 19.00

Remove VAT from a gross price

Divide the gross price by the same factor. The difference between gross and net is the VAT.

net = gross / (1 + rate / 100)

119.00 / 1.19 = 100.00
VAT = 119.00 - 100.00 = 19.00

The common mistake

Taking 19 percent of the gross price does not give you the VAT. 19 percent of 119 is 22.61, which would leave a net price of 96.39. The VAT was calculated on the net price, so it has to be taken out by dividing.

Calculate it for any rate

The VAT calculator adds or removes VAT at any rate and shows net, VAT and gross side by side. It has presets for the standard and reduced rates of Germany, Austria, Switzerland, the UK, France, the Netherlands, Belgium, Spain, Italy, Ireland, Poland, Sweden and Denmark.

Rates change from time to time. Check your tax office for the rate that applies to your product.

VAT CalculatorAdd VAT to a net price or remove it from a gross price, with current rates for the UK and Europe.

Price your product on the net amount

Your margin comes from the net price, because the VAT goes to the tax office. Work out the margin on the price before VAT.

Profit Margin CalculatorWork out profit, margin and markup from cost and price, or the price you need for a target margin.

Tools for this guide

All tools →
VAT CalculatorAdd VAT to a net price or remove it from a gross price, with current rates for the UK and Europe.Profit Margin CalculatorWork out profit, margin and markup from cost and price, or the price you need for a target margin.

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