When you're pricing a product, quoting a client, or reconciling supplier invoices, the same question comes up constantly: how much VAT is in this number?
The good news: the math is simple once you know the two formulas. Everything else is repetition.
The 2 formulas you actually need
Add VAT (net → gross): net × (1 + rate)
Example: €100 net at 20% → 100 × 1.20 = €120 gross.
Remove VAT (gross → net): gross ÷ (1 + rate)
Example: €120 gross at 20% → 120 ÷ 1.20 = €100 net, with €20 VAT.
The classic mistake is multiplying by the rate instead of dividing. 120 × 0.20 = €24 is wrong for removing VAT — because the €120 already includes the tax. Never multiply to remove a tax that's already inside the total.
2026 VAT rates (UK & EU)
| Jurisdiction | Standard rate | Reduced |
|---|---|---|
| United Kingdom | 20% | 5% (energy, some children's items), 0% most food & books |
| Germany | 19% | 7% (food, books, hotels) |
| France | 20% | 10% / 5.5% / 2.1% |
| Netherlands | 21% | 9% |
| Spain | 21% | 10% / 4% |
| Italy | 22% | 10% / 5% / 4% |
| USA | 0% federal | State rates ~0–9.5% (sales tax, not VAT) |
Rates change — always confirm your country's current rate before invoicing.
Worked examples
Pricing a product: You sell a service for €250 net, need the VAT-inclusive price at Germany's 19%: 250 × 1.19 = €297.50 gross (€47.50 VAT).
Reconciling a supplier invoice: A UK invoice shows £480 total incl. 20% VAT. Your net cost: 480 ÷ 1.20 = £400 net, £80 VAT — that's the number that hits your expense account.
What a compliant VAT invoice needs
If you're VAT-registered and invoicing clients, your invoice must show: your name and VAT number, the client's name (and their VAT number for cross-border), invoice date + number, a description, the net amount, the rate, and the VAT amount.
Do it in seconds, in your browser
I built a free VAT/sales tax calculator that does both directions instantly — add or remove VAT at any rate, no signup, nothing uploaded:
👉 https://tooly.work/tools/vat-calculator.html
Also useful: InvoiceForge if you need the full invoice side of things.
(This post is adapted from my VAT calculator guide — 57+ free browser tools on Tooly, no signup, files never leave your device.)
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