How this works
VAT (Value-Added Tax) is the consumption tax used by most countries outside the US. The math is just multiplication: if the net price is N and the VAT rate is r, the gross price is N × (1 + r). Going the other way — stripping VAT out of a gross price — divides instead: N = G / (1 + r). The VAT amount itself is the difference. The calculator above does both directions and lets you pick a country preset or punch in a custom rate. Rates and reduced bands vary widely by jurisdiction. Standard rates in 2026: UK 20%, France 20%, Germany 19%, Spain 21%, Italy 22%, Netherlands 21%, Sweden 25%, Hungary 27% (the EU's highest), Switzerland 8.1%. Most EU countries also have one or two reduced rates for essentials like food, books, hotel stays, and pharmaceuticals — Spain has 10% and 4% reduced bands, France 10% / 5.5% / 2.1%, Germany a single 7% reduced band. Outside Europe: Japan uses 消費税 at 10% standard / 8% on food and newspapers, Australia GST is 10%, Canada GST is 5% federal plus provincial sales tax in most provinces. The US has no federal VAT — sales taxes are state and local, between 0% and ~10%, and apply only to the final consumer rather than at every transaction. A few practical points. (1) Whether quoted prices are net or gross varies by country and context. UK and Ireland retail prices shown to consumers are gross (VAT-inclusive); B2B invoices typically quote net with VAT broken out. Most of continental Europe consumer prices are gross, US shelf prices are pre-tax (sales tax added at the till). (2) When you cross VAT bands within one purchase (food at 5% plus a magazine at 20%), you can't just average — line items have to be calculated separately. (3) Reverse-charge mechanisms in B2B cross-border EU transactions can shift VAT liability to the buyer; the calculator doesn't model that — use it for the arithmetic only.
The formula
Rate is the VAT percentage (e.g. 20 for 20%, not 0.20). The toggle above the result switches between "amount entered is net" and "amount entered is gross". Common 2026 standard rates by country are pre-loaded as quick presets; tap a flag to load that country's rate.
Example calculation
- Net price €100, VAT rate 20% (FR/UK standard).
- VAT amount: €100 × 0.20 = €20
- Gross price: €100 + €20 = €120
- Going the other way — strip VAT from a €120 gross: €120 / 1.20 = €100 net, €20 VAT.
Frequently asked questions
What's the difference between VAT, GST and sales tax?
VAT (Value-Added Tax) and GST (Goods and Services Tax) are essentially the same instrument — a multi-stage tax collected at every step of the supply chain, with businesses claiming back the VAT they paid on inputs. The naming differs by country (Australia, Canada, India, Singapore use "GST"; the EU, UK, Japan and most others use "VAT" or a local-language equivalent), but the mechanics are identical. Sales tax (US, plus historically a few other places) is single-stage — only the final consumer pays, and there's no input-credit mechanism. From the consumer's side the user experience is similar; from a business's side the bookkeeping is very different.
Why is the EU minimum VAT rate 15%?
EU member states have to follow Council Directive 2006/112/EC (the VAT Directive), which sets a minimum standard rate of 15% — countries can go higher but not lower. The directive also restricts how reduced rates can be used (only on specific categories, with a minimum of 5% for most reduced rates). Hungary at 27% is the bloc's highest standard rate; Luxembourg has historically been the lowest at 16%, then 17%. Switzerland sits at 8.1% but isn't in the EU. The directive's broader purpose is to keep EU members from racing to the bottom on VAT to attract cross-border online shopping, which would distort the single market.
How do I calculate the net price from a gross price?
Divide by 1 plus the rate as a decimal, NOT by the rate. A €120 gross at 20% VAT becomes €120 ÷ 1.20 = €100 net; the €20 difference is the VAT. The intuitive but wrong move is to subtract 20% of €120, which gives €96 — that's 20% off, not VAT-out. Toggle the calculator above to "amount is gross" and it does the division for you.
Does the US have anything like VAT?
No — the US is the only major economy without a federal VAT or GST. Sales taxes exist, but they're state-level (and often local on top), single-stage, and only apply at the final retail sale. As a consumer this means: shelf prices in the US are always pre-tax, sales tax is added at checkout, and the rate varies by state from 0% (Oregon, New Hampshire, Montana, Delaware, Alaska — though Alaska allows local sales tax) up to ~10% in places like Tennessee or California. The US has periodically debated introducing a national VAT (notably during 1980s budget reform discussions and again in the 2010s), but it remains politically dead. For travellers used to gross pricing, the "what's on the shelf isn't what you pay" gotcha is the most surprising part of US shopping.