How it's calculated
Each EU member state sets its own VAT rates within the limits of the EU VAT Directive: a standard rate of at least 15%, up to two reduced rates of at least 5%, and, for a limited list of goods and services, super-reduced and zero rates.European Commission The calculator uses the rates recorded in the European Commission's Taxes in Europe Database for 20 October 2026, which now replaces the Commission's old printed list of VAT rates.European Commission UK rates come from GOV.UK.GOV.UK
The formula
- Add VAT: VAT = net × rate; gross = net × (1 + rate)
- Remove VAT: net = gross ÷ (1 + rate); VAT = gross − net
- From a VAT amount: net = VAT ÷ rate; gross = net + VAT
Worked example
Adding Germany's 19% standard rate to a net price of 100 gives 19 of VAT and a gross price of 119. In Hungary, at 27%, the same net price costs 127; in Luxembourg, at 17%, 117.
| Line | Amount |
|---|---|
| Net price | 100 |
| USt / MwSt (19%) | 19 |
| Gross price | 119 |
Taking VAT out of a French price of 120 at the 20% standard rate leaves 100 net.
Assumptions and limitations
- You choose the rate. Which rate applies depends on how each country classifies the product or service.
- Mainland rates. Regional rates in Corsica and the French overseas departments, the Greek islands, Madeira and the Azores are not listed; the Canary Islands, Ceuta and Melilla are outside the EU VAT area.
- Amounts in local currency. Countries outside the euro area charge VAT in their own currency.
- Cross-border sales may require charging the customer's country's VAT; the OSS threshold calculator shows when.