VAT formulas
Gross = net × (1 + rate) · Net = gross ÷ (1 + rate) · VAT in a gross price = gross × rate ÷ (100 + rate)
Example at 19%: €100 net + €19 VAT = €119 gross. From €119 gross: 119 ÷ 1.19 = €100 net. A common mistake is taking 19% off the gross price (€119 − 19% = €96.39), which is wrong.
Standard VAT rates in Europe
| Country | Standard | Reduced |
|---|---|---|
| Germany | 19% | 7% |
| Austria | 20% | 10%, 13% |
| France | 20% | 5.5%, 10% |
| Italy | 22% | 4%, 5%, 10% |
| Spain | 21% | 4%, 10% |
| Netherlands | 21% | 9% |
| United Kingdom | 20% | 5% |
| Ireland | 23% | 9%, 13.5% |
Rates change; check the tax authority of the country before invoicing. Rates shown as of October 2026.
VAT on invoices
A VAT invoice shows the net amount, the VAT rate and the VAT amount separately, plus your VAT registration number. Our invoice generator does this for you; for German invoices choose “Germany” under tax rules.
VAT, GST and sales tax: the difference
VAT (value added tax) and GST (goods and services tax) are charged at every stage of the supply chain, and businesses reclaim the tax they paid on their purchases. US sales tax is charged once, at the final sale to the consumer. That is why a VAT invoice must show the VAT separately and your VAT number: your business customer needs it to reclaim the VAT.
Rounding
Calculate VAT on the total for each rate and round to the cent, rather than rounding every line, unless your country’s rules say otherwise. Small differences of a cent between methods are normal.
Registration thresholds
You charge VAT only once you are registered. Thresholds differ: the UK requires registration once taxable turnover passes £90,000 a year; in Germany the small business rule (Kleinunternehmer) applies up to €25,000 in the previous year and €100,000 in the current year. Many EU countries have lower thresholds or none.
Related calculators
- Free Invoice Generator: Make a professional invoice and download the PDF.
- Sales Tax Calculator: Add or remove US sales tax.
- Rechnung schreiben: Rechnungsvorlage mit allen Pflichtangaben.
Questions people ask
How do I remove 19% VAT from a price?
Divide by 1.19. €238 gross ÷ 1.19 = €200 net, so the VAT is €38.
What is the UK VAT rate?
The standard rate is 20%, with a reduced rate of 5% for some goods such as home energy, and 0% for many foods and children’s clothes.
Formula checked October 2026 · How we calculate