How this VAT calculator works
VAT (value added tax) is a percentage added to the net price of goods and services, used across the EU, UK and many other countries. To add VAT: multiply the net amount by one plus the rate — 20% is 1.20. To remove VAT from a gross amount: divide by one plus the rate. The most common mistake is subtracting the rate percentage from the gross instead of dividing by the multiplier, which gives a wrong net figure.
If you are selling on marketplaces (Etsy, Amazon) and pricing with VAT, remember that the marketplace fee is calculated on the gross price including VAT — use the calculator to check both figures before setting your price.
Common VAT rates
- UK standard rate: 20%
- Netherlands, Spain: 21%
- Germany: 19%
- Denmark, Sweden: 25%
- France: 20% (reduced rates apply to some goods)