VAT Calculator | Add or Remove Tax by Rate

Q: What is the UK VAT rate in 2026?

The UK standard VAT rate is 20% in 2026. This rate applies to most goods and services. There are also reduced rates (5%) for certain items like domestic fuel and zero rates (0%) for essentials like most food and children's clothing.

Q: How do I add VAT to a price?

To add VAT to a net price, multiply the amount by (1 + VAT rate / 100). For example, to add 20% VAT to £100: £100 × 1.2 = £120. Alternatively, calculate the VAT amount first: £100 × 0.20 = £20, then add it to the net price: £100 + £20 = £120.

Q: What is reverse charge VAT?

Reverse charge VAT is a mechanism where the buyer (rather than the seller) accounts for VAT in their VAT return. This is common in B2B transactions, especially for cross-border digital services. The seller doesn't charge VAT, but the buyer must account for it as both input and output VAT, effectively neutralizing the VAT impact while ensuring proper tax reporting.

Q: What is the difference between input VAT and output VAT?

Input VAT is VAT paid on purchases (you can often reclaim this). Output VAT is VAT charged on sales (you must pay this to the tax authority). Your net VAT liability is Output VAT minus Input VAT. If positive, you owe money to the tax authority. If negative, you can claim a refund.

Country	VAT rate	Note
United Kingdom	20.0%	Standard rate
Germany	19.0%	Standard rate
France	20.0%	Standard rate
Spain	21.0%	Standard rate
Italy	22.0%	Standard rate
Netherlands	21.0%	Standard rate
Belgium	21.0%	Standard rate
Austria	20.0%	Standard rate
Portugal	23.0%	Standard rate
Ireland	23.0%	Standard rate
Poland	23.0%	Standard rate
Luxembourg	16.0%	Lowest EU rate
Hungary	27.0%	Highest EU rate
United Arab Emirates	5.0%	Standard rate
Sweden	25.0%	Standard rate
Denmark	25.0%	Standard rate
Norway	25.0%	Standard rate
Switzerland	7.7%	Standard rate
Australia	10.0%	GST
New Zealand	15.0%	GST
Canada	5.0%	GST (varies by province)
Singapore	9.0%	GST (from 2024)
Japan	10.0%	Consumption tax
South Korea	10.0%	VAT
India	18.0%	GST (varies by category)
Brazil	17.0%	ICMS (varies by state)
South Africa	15.0%	VAT
Mexico	16.0%	IVA
Argentina	21.0%	IVA

VAT Calculator 2026: Add or Remove VAT with Precision

Calculate VAT with manual rate input. How to calculate VAT backwards; add or remove VAT with two-decimal precision. Reverse charge, global rates. No sign-up, all calculations run locally.

What This Calculator Does

This VAT calculator adds VAT to a net price or removes VAT from a gross (tax-inclusive) price, with results rounded to exactly two decimal places for tax compliance. Enter any VAT rate manually or reference the global rate table for 100+ countries. The tool runs entirely in your browser, no data is sent to any server. Use it for invoicing, VAT returns, price comparisons, or checking whether a supplier's VAT breakdown is correct. It does not file VAT returns or connect to tax authority systems.

Modes:

Add VAT (net → gross) or Remove VAT (gross → net).
Outputs:

Net price, VAT amount, and gross price, all rounded to two decimal places.

How the Math Works

VAT calculations use two complementary formulas depending on whether you are adding or removing tax. The key insight is that removing VAT requires division, not subtraction, a common source of errors:

Add VAT:

$\text{Gross} = \text{Net} \times \left(1 + \frac{r}{100}\right)$
Remove VAT:

$\text{Net} = \frac{\text{Gross}}{1 + r/100}$
VAT Amount:

VAT = Gross − Net (the difference between gross and net, regardless of direction).
Worked Example (20% UK VAT):

Add: £100 × 1.20 = £120.00 gross. Remove: £120 ÷ 1.20 = £100.00 net, VAT = £20.00. Subtracting 20% from £120 gives £96 (incorrect), always divide to reverse VAT.
Precision:

All results are rounded to exactly two decimal places, matching HMRC and most international tax authority requirements.

How to Use This Calculator

Calculate VAT in either direction with these steps:

Choose Direction:

Select "Add VAT" if you have a net (ex-VAT) price, or "Remove VAT" if you have a gross (VAT-inclusive) price.
Enter the Amount:

Type the net price (when adding) or gross price (when removing) in your currency.
Set the VAT Rate:

Enter the rate manually (e.g., 20 for UK standard) or consult the global rates table below the calculator for the correct percentage.
Read the Results:

The calculator displays net price, VAT amount, and gross price, all rounded to two decimal places. Use these figures for invoices, VAT returns, or price verification.

Featured Snippet: How do you calculate VAT backwards in 2026?

Reverse VAT Calculation

To remove VAT from a price, divide the total (gross) amount by 1 + (VAT rate / 100). For a 20% rate, divide by 1.2. For a 5% rate, divide by 1.05. This isolates the net price before tax was added.

Formula:

$\text{Net} = \frac{\text{Gross}}{1 + r/100}$
Example (20% VAT):

£120 ÷ 1.2 = £100 (net price)
Example (5% VAT):

£105 ÷ 1.05 = £100 (net price)
Common Mistake:

Never simply subtract the percentage. Taking 20% off £120 gives £96 (incorrect), not £100 (correct).

The reverse VAT calculation uses division, not subtraction. This ensures accurate extraction of the net price from a VAT-inclusive total.

Understanding VAT Calculations

Adding VAT (Forward Calculation)

To add VAT to a net price, multiply by (1 + VAT rate / 100) or calculate the VAT amount separately and add it:

Method 1 (Direct):

$\text{Gross} = \text{Net} \times (1 + r/100)$
Method 2 (Step-by-Step):

VAT Amount = Net Price × (VAT Rate / 100)
Gross Price = Net Price + VAT Amount
Example (20% VAT):

£100 × 1.2 = £120 (gross price)
Or: £100 × 0.20 = £20 (VAT), then £100 + £20 = £120

Both methods yield the same result. The direct multiplication method is faster, while the step-by-step method shows the VAT amount separately.

Removing VAT (Reverse Calculation)

To extract VAT from a gross (inclusive) price, divide by (1 + VAT rate / 100). This is the inverse of adding VAT:

Formula:

$\text{Net} = \frac{\text{Gross}}{1 + r/100}$
VAT Amount:

VAT Amount = Gross Price - Net Price
Example (20% VAT):

£120 ÷ 1.2 = £100 (net price)
VAT Amount = £120 - £100 = £20
Why Division, Not Subtraction:

The gross price already includes VAT. To extract it, you must reverse the multiplication that added it. Division by (1 + rate) achieves this correctly.

The reverse calculation is critical for businesses that receive VAT-inclusive prices and need to determine the net amount for accounting purposes.

Precision and Rounding

VAT calculations must be rounded to exactly two decimal places to comply with tax authority requirements:

HMRC Requirement:

All VAT amounts must be rounded to 2 decimal places
International Standard:

Most tax authorities (EU, UK, UAE) require 2-decimal precision
Rounding Method:

Standard rounding: 0.005 and above rounds up, below 0.005 rounds down
Example:

£100 × 0.20 = £20.00 (not £20 or £20.000)

Precision matters for VAT returns. Incorrect rounding can lead to discrepancies that require correction and may trigger audits.

2026 Global VAT Rates

European Union Rates

EU member states set their own VAT rates, with a minimum standard rate of 15%:

Lowest EU Rate:

Luxembourg: 16% (standard rate)
Highest EU Rate:

Hungary: 27% (standard rate)
Average EU Rate:

Approximately 21.8% across all member states
Common Rates:

Most countries fall between 19% (Germany) and 23% (Ireland, Portugal, Poland)
UK Rate:

20% (standard rate, unchanged from pre-Brexit)

While EU countries must maintain a minimum 15% standard rate, they can set higher rates and apply reduced rates (5-10%) or zero rates (0%) to specific goods and services.

Other Major Economies

VAT rates vary significantly outside the EU:

United Arab Emirates:

5% (introduced in 2018, one of the lowest rates globally)
Switzerland:

7.7% (standard rate)
Australia:

10% (GST - Goods and Services Tax)
New Zealand:

15% (GST)
Canada:

5% GST (varies by province, combined rates can reach 15%)
Japan:

10% (Consumption Tax, increased from 8% in 2019)
South Korea:

10% (VAT)
India:

18% GST (varies by category, can be 5%, 12%, or 28%)

Many countries use different terminology (GST, Consumption Tax, IVA) but the calculation principles remain the same.

Business VAT Scenarios

Input VAT vs. Output VAT

Businesses must understand the difference between input and output VAT for proper tax management:

Input VAT:

VAT paid on purchases (goods and services bought for the business). This can typically be reclaimed from the tax authority.
Output VAT:

VAT charged on sales (goods and services sold by the business). This must be paid to the tax authority.
Net VAT Liability:

Output VAT - Input VAT = Amount owed to (or refunded by) the tax authority
Example:

If you charge £1,200 in output VAT and paid £800 in input VAT, you owe £400 to HMRC.
VAT Registration Threshold:

In the UK, businesses must register for VAT if annual taxable turnover exceeds £90,000 (2026 threshold).

VAT-registered businesses can reclaim input VAT, making it a cash flow consideration rather than a cost for most transactions.

Reverse Charge Mechanism

The reverse charge shifts VAT responsibility from seller to buyer, common in B2B and cross-border transactions:

How It Works:

The seller does not charge VAT. Instead, the buyer accounts for VAT in their own VAT return as both input and output VAT.
Common Scenarios:

Cross-border digital services, B2B transactions between VAT-registered businesses, construction services in some jurisdictions
Impact:

The VAT amount is neutralized (input = output), but proper reporting is still required for compliance.
Example:

A UK business buys digital services from a US company. The UK business accounts for 20% VAT in its return, but the net cost remains the same.
Documentation:

Reverse charge transactions require specific invoicing that indicates the reverse charge applies.

Reverse charge simplifies cross-border transactions while ensuring VAT is properly accounted for in the buyer's jurisdiction.

Reduced and Zero Rates

Many countries apply reduced or zero VAT rates to specific goods and services:

Zero Rate (0%):

Most food (non-luxury), children's clothing, books, prescription medicines. VAT is charged at 0%, but businesses can still reclaim input VAT.
Reduced Rate (5%):

Domestic fuel, energy-saving materials, children's car seats. In the UK, this applies to certain essential items.
Super-Reduced Rate:

Some countries have rates below 5% (e.g., 4% in some EU countries for specific items)
Exempt Items:

Financial services, insurance, education, healthcare. These are exempt from VAT, but businesses cannot reclaim input VAT on related purchases.

Understanding rate categories is crucial for businesses to ensure correct VAT application and maximize input VAT recovery.

Common VAT Calculation Mistakes

Incorrect Reverse Calculation

The most common error when removing VAT is using subtraction instead of division:

Wrong Method:

£120 - 20% = £96 (incorrect)
Correct Method:

£120 ÷ 1.2 = £100 (correct)
Why It's Wrong:

Subtracting 20% from the gross price doesn't account for the fact that the gross price already includes VAT. The VAT was calculated on the net price, not the gross price.
Visual Example:

If net = £100 and VAT = 20%, then gross = £120. To reverse this, you must divide £120 by 1.2, not subtract 20% from £120.

Always use division by (1 + rate) when extracting VAT from a gross price. This calculator uses the correct method automatically.

Rounding Errors

Incorrect rounding can cause discrepancies in VAT returns:

Issue:

Rounding intermediate calculations instead of only the final result
Solution:

Carry full precision through calculations, then round only the final amount to 2 decimal places
Example:

£100.00 × 0.20 = £20.00 (not £20 or £20.000). Round only at the end, not during intermediate steps.

This calculator maintains precision throughout calculations and rounds only the final displayed results to 2 decimal places.

Confusing Net and Gross

Understanding which amount you're starting with is crucial:

Net Price (Excl. VAT):

The price before VAT is added. Use this when adding VAT.
Gross Price (Incl. VAT):

The price after VAT is added. Use this when removing VAT.
Common Confusion:

Starting with a gross price but using the "add VAT" calculation, or vice versa
Solution:

Use the calculator's mode toggle to ensure you're using the correct calculation direction for your starting amount.

The calculator clearly labels inputs and outputs to prevent confusion between net and gross amounts.

FAQ

How do you calculate VAT backwards in 2026?

To remove VAT from a price, divide the total (gross) amount by 1 + (VAT rate / 100). For example, to remove 20% VAT from £120, divide by 1.2: £120 ÷ 1.2 = £100. For a 5% rate, divide by 1.05. Important: Simply subtracting the percentage (e.g., taking 20% off £120) is incorrect and will give you the wrong result (£96 instead of £100).

What is the UK VAT rate in 2026?

The UK standard VAT rate is 20% in 2026. This rate applies to most goods and services. There are also reduced rates (5%) for certain items like domestic fuel and zero rates (0%) for essentials like most food and children's clothing.

How do I add VAT to a price?

To add VAT to a net price, multiply the amount by (1 + VAT rate / 100). For example, to add 20% VAT to £100: £100 × 1.2 = £120. Alternatively, calculate the VAT amount first: £100 × 0.20 = £20, then add it to the net price: £100 + £20 = £120.

What is reverse charge VAT?

Reverse charge VAT is a mechanism where the buyer (rather than the seller) accounts for VAT in their VAT return. This is common in B2B transactions, especially for cross-border digital services. The seller doesn't charge VAT, but the buyer must account for it as both input and output VAT, effectively neutralizing the VAT impact while ensuring proper tax reporting.

What is the difference between input VAT and output VAT?

Input VAT is VAT paid on purchases (you can often reclaim this). Output VAT is VAT charged on sales (you must pay this to the tax authority). Your net VAT liability is Output VAT minus Input VAT. If positive, you owe money to the tax authority. If negative, you can claim a refund.

What are the EU VAT rates in 2026?

EU VAT rates vary by country in 2026. The average is around 21.8%, with Luxembourg (16%) having the lowest standard rate and Hungary (27%) having the highest. Most countries fall between 19% and 23%. Rates are set by individual member states, though they must maintain a minimum standard rate of 15%.

How do I calculate VAT with precision?

VAT calculations must be rounded to exactly two decimal places, as required by tax authorities like HMRC. This ensures compliance with international accounting standards. The calculator automatically rounds all results to 2 decimal places, preventing rounding discrepancies in VAT returns.

Can I use this calculator for international VAT?

Yes! The calculator supports any VAT rate for any jurisdiction. Simply enter the rate manually. The global VAT rates table below the calculator provides reference rates for major countries to help you find the correct percentage. You can use this calculator for standard rates, reduced rates, super-reduced rates, or any custom rate required.

Calculation direction

Amount

VAT rate

Business options

Business VAT context

Global VAT rates reference

Global context

Precision

Reverse charge

Strategic VAT Insights

Forward vs. Reverse Calculation

Precision Requirements

Regional Rate Variations

Reverse Charge Mechanism

When Precision Matters Most

What This Calculator Does

How the Math Works

How to Use This Calculator

Featured Snippet: How do you calculate VAT backwards in 2026?

Reverse VAT Calculation

Understanding VAT Calculations

Adding VAT (Forward Calculation)

Removing VAT (Reverse Calculation)

Precision and Rounding

2026 Global VAT Rates

European Union Rates

Other Major Economies

Business VAT Scenarios

Input VAT vs. Output VAT

Reverse Charge Mechanism

Reduced and Zero Rates

Common VAT Calculation Mistakes

Incorrect Reverse Calculation

Rounding Errors

Confusing Net and Gross

FAQ

How do you calculate VAT backwards in 2026?

What is the UK VAT rate in 2026?

How do I add VAT to a price?

What is reverse charge VAT?

What is the difference between input VAT and output VAT?

What are the EU VAT rates in 2026?

How do I calculate VAT with precision?

Can I use this calculator for international VAT?

Sources & citations

Financial Estimation Note