Invoice No.

Free calculator

VAT calculator

Enter an amount, pick your country, and choose whether to add VAT to a net price or extract it from a gross total. Covers all 27 EU member states plus the UK, Australia, Singapore, India, UAE, and more.

€

Net

€1,000.00

VAT (MwSt)

€190.00

Gross

€1,190.00

Rate

19%

standard rate

Germany · Standard rate 19%. A reduced rate of 7% applies to food, books, cultural events, and public transport. Threshold: €22,000 (prior year revenue).

Standard rates only. Actual rates depend on the type of goods or services. Verify with your local tax authority before filing or invoicing.

What is VAT (and GST)?

VAT is value-added tax, a consumption tax charged on most goods and services. Countries outside the EU often call their version GST, the goods and services tax. If you invoice clients, sell products online, or run a business across borders, you will meet it. Charging the wrong amount means overbilling your client or underpaying the tax authority.

VAT is the most widely used consumption tax in the world, so almost every freelancer who bills across borders runs into it at some point.

How does VAT work?

VAT is collected at every stage of the supply chain, from manufacturer to wholesaler to retailer to final consumer. At each step a business charges VAT on its sales, called output VAT, and reclaims the VAT on purchases, called input VAT. Only the difference goes to the tax authority. The final consumer cannot reclaim, so they carry the full cost.

This design means that VAT is largely self-enforcing: each business in the chain has an incentive to obtain VAT invoices from its suppliers so it can reclaim input VAT. A correct VAT invoice is therefore more than a formality. It is the document that allows your client to recover the tax they paid you.

How do you add VAT to a price or remove it?

To add VAT to a net price, multiply the net amount by one plus the rate. A 1,000 euro net invoice at 19 percent becomes 1,190 euro gross. To pull VAT out of a gross price, divide the gross by one plus the rate. Dividing by the rate on its own gives the wrong figure every time.

There are two common situations where you need to calculate VAT:

  • Adding VAT to a net amount (also called exclusive of VAT): you know the pre-tax price and need to calculate the total your client will pay. The formula is: Gross = Net × (1 + rate/100). For example, a €1,000 net invoice at 19% German MwSt produces a gross of €1,190.
  • Extracting VAT from a gross amount (also called inclusive of VAT): you know the total price already includes tax and want to find the net and the VAT component. The formula is: Net = Gross ÷ (1 + rate/100). For €1,190 gross at 19%, the net is €1,000 and the VAT is €190. Note that dividing by the rate directly gives the wrong answer — you must always divide by (1 + rate).

When do you need to register for VAT?

Registration requirements vary by country. Most have a turnover threshold below which small businesses are exempt — typically €22,000–€50,000 in EU countries, £90,000 in the UK, and AUD 75,000 in Australia. Once you exceed the threshold, registration is compulsory, not optional.

If you sell digital services to consumers in other EU countries, you may need to register for the EU's One Stop Shop (OSS) scheme even before exceeding domestic thresholds. The same applies to UK VAT on digital services sold to UK consumers after Brexit. Cross-border selling has added significant complexity to VAT obligations for freelancers and online sellers.

What are standard, reduced, and zero rates?

This calculator applies standard rates, the default rate a country charges on most goods and services. Many countries also set reduced rates for essentials like food, books, and public transport, and zero rates where you charge no VAT but can still reclaim what you paid. Exempt supplies sit outside VAT entirely, so you cannot reclaim related costs.

Most countries also have reduced rates for specific categories of goods and services:

  • Reduced ratestypically apply to food, medicines, books, children's clothing, and public transport. In the EU, most countries have at least one reduced rate alongside the standard.
  • Zero ratesmean the supply is taxable but at 0% — so you charge no VAT, but you can still reclaim input VAT. The UK zero-rates most food and children's clothes. This is different from being exempt.
  • Exempt supplies are outside the VAT system entirely. Financial services, insurance, and healthcare are commonly exempt. If you make exempt supplies, you cannot reclaim the VAT on costs related to those supplies.

For professional services — consulting, design, software, writing, marketing — the standard rate almost always applies. If you are unsure whether a reduced or zero rate covers your service, check with your local tax authority or an accountant.

How does VAT differ from US and Canadian sales tax?

The United States has no federal VAT. States charge their own sales tax, collected only at the final sale and not recoverable by businesses. Canada runs a hybrid: a 5 percent federal GST, sometimes combined with provincial tax into HST, and registered businesses can claim input tax credits much as they would under VAT.

The United States does not have a federal VAT. Instead, US states levy their own sales taxes, typically charged only at the point of final sale to the consumer. Unlike VAT, sales tax is not recoverable by businesses — it is a one-time cost at the end of the chain. Rates vary from 0% (Oregon, Montana, and a few others) to above 10% when combined with local levies.

Canada uses a hybrid system. The federal government charges a 5% GST on most goods and services. Some provinces harmonise with the federal government into a single Harmonized Sales Tax (HST) — ranging from 13% in Ontario to 15% in the Atlantic provinces — while others charge a separate Provincial Sales Tax (PST) on top of the federal GST. The mechanics are closer to VAT than to US sales tax, in that registered businesses can claim input tax credits.

How do you show VAT on an invoice?

A valid VAT invoice shows the net amount and the VAT amount on separate lines. Most countries also require your VAT registration number, the invoice date, and a description of the supply. A VAT-registered client needs these details to reclaim the tax, so a gross total alone leaves them nothing to work with.

When invoicing across borders within the EU, the rules become more nuanced — B2B supplies to registered businesses in other member states are often zero-rated under the reverse charge mechanism. In that case, you show the net amount, write "VAT: €0 — reverse charge applies" or similar, and include your client's VAT number. Your client self-accounts for the VAT in their own jurisdiction.

Disclaimer: The rates shown in this calculator are standard rates for general information only. VAT and GST rules are complex and subject to change. Reduced rates, zero rates, exemptions, and cross-border rules may alter what applies to your specific situation. Consult a tax adviser or your local tax authority before making filing decisions.