How to add VAT
Multiply the net price by the VAT rate to get the VAT, then add it on – or simply multiply by (1 + rate). At the UK standard rate of 20%, a £250 net price has £50 VAT and costs £300 including VAT (£250 × 1.2).
How to remove VAT (reverse VAT)
To find the net price inside a VAT-inclusive amount, divide by (1 + rate). A £300 price including 20% VAT: £300 ÷ 1.2 = £250 net, so the VAT is £50. A quick UK shortcut: the VAT in a gross price at 20% is always one sixth of the total.
VAT rates by country (2026)
| Country | Standard rate | Standard / reduced rates |
|---|---|---|
| United Kingdom | 20% | 20 / 5 / 0 |
| Ireland | 23% | 23 / 13.5 / 9 |
| Germany | 19% | 19 / 7 |
| France | 20% | 20 / 10 / 5.5 / 2.1 |
| Spain | 21% | 21 / 10 / 4 |
| Italy | 22% | 22 / 10 / 5 / 4 |
| Netherlands | 21% | 21 / 9 |
| Belgium | 21% | 21 / 12 / 6 |
| Austria | 20% | 20 / 13 / 10 |
| Portugal | 23% | 23 / 13 / 6 |
| Poland | 23% | 23 / 8 / 5 |
| Sweden | 25% | 25 / 12 / 6 |
| Denmark | 25% | 25 |
| Finland | 25.5% | 25.5 / 13.5 / 10 |
| Greece | 24% | 24 / 13 / 6 |
| Estonia | 24% | 24 / 13 / 9 |
| Romania | 21% | 21 / 11 |
| Hungary | 27% | 27 / 18 / 5 |
| Czechia | 21% | 21 / 12 |
| Luxembourg | 17% | 17 / 14 / 8 / 3 |
| United Arab Emirates | 5% | 5 / 0 |
| Saudi Arabia | 15% | 15 |
| South Africa | 15% | 15 |
| Switzerland | 8.1% | 8.1 / 3.8 / 2.6 |
Rates change from time to time – Estonia moved to 24% and Romania to 21% in 2025, and Finland cut its main reduced rate to 13.5% in 2026. Always check the current rate and which rate applies to your product or service with your tax authority.
VAT on your invoices
If you are VAT-registered, your invoices must normally show your VAT number, the net amount, the VAT rate and amount for each rate, and the gross total. Our UK VAT invoice template, EU VAT invoice template and UAE VAT invoice template are set up for exactly that, and the invoice generator calculates VAT on every line. For US sales tax, use the sales tax calculator.
Frequently asked questions
How do I calculate 20% VAT?
To add it, multiply the net price by 1.2. To remove it from a VAT-inclusive price, divide by 1.2. The VAT itself is net × 0.2, or gross ÷ 6.
What is the VAT rate in the UK?
The standard rate is 20%. A reduced rate of 5% applies to some goods and services such as home energy, and some items are zero-rated (0%), including most food and children's clothes.
How do I work out VAT backwards?
Divide the gross amount by 1 plus the VAT rate (for 20%, divide by 1.2). The result is the net price; subtract it from the gross amount to get the VAT.
Do I charge VAT to customers in other countries?
It depends on whether you sell goods or services, to businesses or consumers, and where they are. B2B services within the EU usually use the reverse charge. Check your tax authority's guidance or an accountant.
