VAT Calculator
From net to gross
Gross price = net price × (1 + VAT rate ÷ 100), and the VAT amount is the difference.
Example: €200 excluding VAT at 20% gives 200 × 1.20 = €240 including VAT, of which €40 is VAT.
Removing VAT from a gross price
The most common mistake is to subtract the rate from the gross price. To go back to the net price, divide by (1 + rate):
- €240 incl. 20% VAT → 240 ÷ 1.20 = €200 net (VAT = €40).
- Wrong method: 240 − 20% = €192 — this underestimates the net price by €8.
The VAT included in a gross price is gross × rate ÷ (100 + rate): at 20%, it is one sixth of the gross price.
Standard and reduced rates
| Country | Standard rate | Reduced rates (examples) |
|---|---|---|
| France | 20% | 10% (restaurants, transport, renovation work), 5.5% (most food, books, energy), 2.1% (reimbursable medicines, press) |
| United Kingdom | 20% | 5% (home energy, children's car seats), 0% (most food, children's clothes) |
| Germany | 19% | 7% (food, books, public transport) |
| Belgium | 21% | 12% and 6% |
| Switzerland | 8.1% | 2.6% (food, books), 3.8% (accommodation) |
Rates change from time to time and specific rules apply to many products, so check the official tax authority website for a precise case. In the United States there is no VAT; states and cities levy sales taxes instead.
For businesses and freelancers
A VAT-registered business charges VAT on its sales (output VAT), deducts the VAT it paid on its purchases (input VAT), and pays the difference to the tax authority. Prices quoted to professional customers are usually net of VAT; prices shown to consumers must include it. Some small businesses below a turnover threshold are exempt from charging VAT — in France this is the "franchise en base" regime, with the mention "TVA non applicable, art. 293 B du CGI" on invoices.
Frequently Asked Questions
How do I remove 20% VAT from a price?
Divide by 1.2. For example, €120 including VAT is 120 ÷ 1.2 = €100 excluding VAT. Subtracting 20% would give a wrong result (€96).
How much VAT is included in a price?
Multiply the gross price by rate ÷ (100 + rate). At 20%, that is one sixth: €120 includes €20 of VAT.
What VAT rate applies in restaurants in France?
10% for food and soft drinks consumed on site or taken away for immediate consumption, and 20% for alcoholic drinks.