How to add VAT to a price
To add VAT, multiply the net price (the price before tax) by 1 plus the VAT rate written as a decimal. At 20% VAT you multiply by 1.20, at 25% by 1.25, and at 5% by 1.05.
- Write the VAT rate as a decimal: 20% = 0.20.
- Add 1 to get the multiplier: 1 + 0.20 = 1.20.
- Multiply the net price by the multiplier: 250 × 1.20 = 300. That is the gross price, including VAT.
- The VAT itself is the difference: 300 − 250 = 50 (or simply 250 × 0.20).
How to remove VAT from a price (reverse VAT)
To find the price before VAT, divide the gross price by the same multiplier — do not subtract the percentage. A price of 123 including 23% VAT is 123 ÷ 1.23 = 100 before VAT, so the VAT is 23.
Subtracting the rate gives the wrong answer because VAT is calculated on the net price, not the gross. Taking 20% off 120 gives 96, but 120 including 20% VAT is really 100 + 20 of VAT. The VAT share of a gross price is always smaller than the rate itself: at 20% VAT it is one sixth (16.67%) of the price you pay.
VAT multipliers at a glance
| VAT rate | Add VAT: multiply net by | Remove VAT: divide gross by | VAT share of the gross price |
|---|---|---|---|
| 5% | 1.05 | 1.05 | 4.76% |
| 10% | 1.10 | 1.10 | 9.09% |
| 15% | 1.15 | 1.15 | 13.04% |
| 19% | 1.19 | 1.19 | 15.97% |
| 20% | 1.20 | 1.20 | 16.67% (1/6) |
| 21% | 1.21 | 1.21 | 17.36% |
| 23% | 1.23 | 1.23 | 18.70% |
| 25% | 1.25 | 1.25 | 20.00% (1/5) |
| 25.5% | 1.255 | 1.255 | 20.32% |
VAT share of the gross price = rate ÷ (100 + rate). For 25.5% (Finland), choose "Custom rate" in the calculator.
Standard VAT rates by country (2026)
Every country sets its own standard rate, and most also have one or more reduced rates for things like food, books, transport or hotels. These are the standard rates that apply to most goods and services:
| Country | Standard rate |
|---|---|
| United Kingdom | 20% |
| Ireland | 23% |
| Germany | 19% |
| France | 20% |
| Netherlands | 21% |
| Belgium | 21% |
| Spain | 21% |
| Italy | 22% |
| Portugal | 23% |
| Austria | 20% |
| Poland | 23% |
| Sweden | 25% |
| Denmark | 25% |
| Norway | 25% |
| Finland | 25.5% |
| Hungary | 27% (highest in the EU) |
| Luxembourg | 17% (lowest in the EU) |
| Switzerland | 8.1% |
| Australia (GST) | 10% |
| New Zealand (GST) | 15% |
| South Africa | 15% |
| United Arab Emirates | 5% |
Standard rates as of October 2026. Rates change from time to time — check your tax authority before filing. The United States has no VAT; sales tax is set by states and cities and is added at the till.
Common VAT mistakes
- Subtracting the VAT rate from a gross price instead of dividing by the multiplier.
- Mixing net and gross prices on the same invoice or quote — always say "excl. VAT" or "incl. VAT".
- Rounding VAT on every line and then adding the lines up, which can differ by a cent or two from calculating VAT on the total. Follow the rule your tax authority uses for invoices.
- Using the standard rate for goods that have a reduced rate in your country, such as food or children’s clothing in some countries.