UK & EU VAT Calculator 2026

UK VAT at standard rate is 20%. VAT amount = Price × 0.20. Example: £150 net price. VAT = 150 × 0.20 = £30. Total (gross) = £180. For VAT-inclusive prices: VAT = Total × (20/120) = Total × 0.1667. Example: £180 gross. VAT = 180 × 0.1667 = £30. Net = £150. UK has reduced rate (5%) for energy and some items, and zero rate for most food and children's clothes. Standard rate applies to most goods and services. VAT-registered businesses charge VAT on outputs and reclaim on inputs. The calculator handles inclusive and exclusive UK VAT calculations.

Removing VAT (extracting) from a UK VAT-inclusive price: Net Price = Gross / 1.20. Example: £240 gross including 20% VAT. Net = 240 / 1.20 = £200. VAT portion = £40. Don't simply subtract 20% — that gives the wrong answer (240 − 48 = £192, incorrect). The correct method divides by 1.20 because VAT is added on top of net. Useful for: invoicing, expense reports, business accounting where net values are needed for VAT returns. Reduced rate items: divide by 1.05 instead. The calculator handles VAT removal at any UK rate accurately.

EU VAT rates vary by country. Standard rates (2024): Germany 19%, France 20%, Italy 22%, Spain 21%, Netherlands 21%, Belgium 21%, Ireland 23%, Portugal 23%, Sweden 25%, Denmark 25%, Hungary 27% (highest in EU). Most countries also have reduced rates for food, books, transport, etc. Luxembourg has the lowest standard rate at 17%. EU rules require minimum standard rate of 15%. Cross-border B2B uses reverse charge mechanism. Tourists from outside EU can claim VAT refunds on departure for purchases above thresholds. The calculator handles EU VAT for any country and rate combination.

VAT-exclusive (net) price: amount before VAT. VAT-inclusive (gross) price: amount including VAT. Conversion: Gross = Net × (1 + VAT rate); Net = Gross / (1 + VAT rate). Example: at 20% VAT — net £100 → gross £120; gross £120 → net £100. UK retail prices typically shown as VAT-inclusive (consumers see total). B2B invoices typically show net + VAT separately. Spotting which type avoids miscalculations. Quoted prices in adverts are usually inclusive for B2C, exclusive for B2B trade publications. Always confirm whether quote includes VAT before signing. The calculator handles both directions for any rate.

UK VAT (post-Brexit) operates independently from EU VAT, though structure is similar. UK standard rate 20%, reduced 5%, zero rate. EU member states each set their own standard rate (15-27%) within EU framework. UK no longer uses EU VAT MOSS for digital services — UK has its own scheme. Cross-border between UK and EU now treated as imports/exports — paperwork and customs apply. Northern Ireland has special status — follows EU VAT rules for goods. Travelers can reclaim VAT on UK exports (under certain schemes) and EU exports for non-EU residents. The calculator handles UK and EU rates separately.

Reverse VAT calculation extracts VAT from a gross amount. Formula: VAT = Gross × (rate / (100 + rate)). At 20% UK rate: VAT = Gross × (20/120) = Gross × 0.1667. Example: £600 gross invoice. VAT = 600 × 0.1667 = £100. Net = £500. For 5% reduced rate: VAT = Gross × (5/105) = Gross × 0.04762. Useful for: invoice processing, expense claims, VAT returns where you need to split a gross total into net + VAT. Always verify with arithmetic check: Net + VAT = Gross. The calculator does reverse VAT for any rate including reduced rates.

VAT applies to the discounted price, not the original. Example: £100 item with 25% trade discount. Net after discount = £75. VAT at 20% = £15. Total = £90. The discount reduces the taxable base before VAT calculation. This applies to: trade discounts, promotional discounts, settlement discounts (if known at invoice time). Conditional discounts (e.g., early payment) may need adjustment via credit note. Manufacturer rebates received later don't usually reduce VAT already charged. For invoicing, always show: gross price, discount, net taxable amount, VAT rate, VAT amount, and final total. The calculator handles discount-before-VAT correctly.