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$

Standard rates only. Reduced rates for food, books or other goods differ by country, so enter the rate that applies.

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Result

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The formula

Add tax: Gross = Net × (1 + rate); Tax = Gross − Net. Extract from inclusive: Net = Gross ÷ (1 + rate); Tax = Gross − Net. Use the rate as a decimal (21% → 0.21).

VAT = net × rate · Gross = net × (1 + rate) · Net = gross ÷ (1 + rate)

Worked example

  1. Net $100, VAT 21% → Gross = 100 × 1.21 = $121; Tax = $21
  2. Inclusive $121 at 21% → Net = 121 ÷ 1.21 = $100; Tax = $21

Result: $100 net · $21 VAT · $121 gross

How VAT add and extract work

VAT is a percentage of the taxable net. Inclusive shelf prices already embed that tax — extraction reverses the markup.

Add tax (exclusive → inclusive)

Start from a net (ex-VAT) amount. Multiply by (1 + r) for the customer-facing gross. This matches B2B quotes that show net + VAT separately.

Extract tax (inclusive → exclusive)

Divide the gross by (1 + r). Do not multiply the gross by the rate — that overstates tax. Example mistake: 21% of $121 = $25.41, but true VAT in $121 at 21% is $21.

Standard rates by country

Standard VAT rates differ by country (for example DE 19%, FR/UK 20%, NL/ES 21%, IT 22%, HU 27%). Reduced rates for food or books are not auto-selected — enter the rate that applies to your goods.

Interesting facts

Never multiply inclusive by the rate

Tax inside a gross price is Gross − Gross/(1+r), not Gross × r.

Standard vs reduced rates

Many countries use reduced VAT for essentials. Confirm the rate for your product category.

B2B vs B2C invoices

Business invoices often show net, VAT, and gross on separate lines — same math as this tool.

Sales tax vs VAT

U.S. sales tax is usually added at checkout; VAT is often embedded in shelf prices. The arithmetic for a single rate is the same family.

VAT share of the total

At 21% on net, VAT is about 17.4% of the gross (rate ÷ (1 + rate)), not 21% of the shelf price.

Frequently asked questions

Choose Add VAT, enter the net amount, and set the rate to 21% (or pick a country preset). Gross = net × 1.21.

Choose Remove VAT, enter the gross amount and rate. Net = gross ÷ (1 + rate).

Because the rate applies to the net, not the gross. Multiplying an inclusive price by the rate overstates tax.

Use your country’s standard rate for most goods, or the reduced rate if it applies. Country presets cover common standards.

Yes for the arithmetic — enter your local sales tax percentage. US sales tax is usually added at checkout rather than embedded in the shelf price.

References

  1. VAT rates — Taxation and Customs Union — European Commission EU VAT framework and standard / reduced rate information.
  2. Sales tax — consumer basics — U.S. Federal Trade Commission General consumer context for checkout taxes and pricing.

Regional versions

Educational tax arithmetic only — not tax advice. Standard rates shown are teaching defaults and change over time; reduced, zero and special rates exist. Rules and filing obligations vary by jurisdiction.

Last reviewed: 2026-10-11 — Reviewed by: Editorial Team

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