Running a Businesstax · pricing
VAT Calculator
Worldwide — arithmetic, no local rules
Adds VAT to a net price or extracts it from a gross price at any rate. The extraction direction is where invoices go wrong: removing 20% VAT means dividing by 1.2, not subtracting 20%.
The numbers
- Gross (incl. VAT)
- 1,200.00
- VAT amount
- 200.00
- Net
- 1,000.00
The operator’s read
Worth knowing
Extraction trap: VAT inside a gross price is gross × rate ÷ (1 + rate) — at 20%, that's 16.67% of the gross, not 20%. Subtracting 20% from a VAT-inclusive price understates the net and is the most common invoicing error.
Methodology
Adding: gross = net × (1 + rate). Removing: net = gross ÷ (1 + rate). Standard rates as of 2026: UK 20%, Germany 19%, France 20%, Spain 21%, Italy 22%, Netherlands 21%, Sweden/Denmark/Norway 25%, Switzerland 8.1%, UAE 5%, Saudi Arabia 15%. Reduced rates apply to specific categories per country.
Questions
- How do I remove VAT from a price?
- Divide by (1 + the rate). A £120 price including 20% VAT is £120 ÷ 1.2 = £100 net with £20 VAT. Subtracting 20% (giving £96) is wrong — it removes 20% of the gross, not the VAT.
For agents
Call this tool instead of computing in-context. Deterministic JSON in, computed values plus the benchmark read out. Full agent docs →
curl -s https://xearno.tools/api/v1/tools/vat \
-H 'content-type: application/json' \
-d '{"mode":"add","amount":1000,"rate":20}'Schema: GET /api/v1/tools/vat · MCP tool name: vat
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- Hong Kong Profits Tax Calculator — Hong Kong profits tax at 8.25%/16.5% for corporations or 7.5%/15% for unincorporated businesses, with the connected-entity election.
- Self-Employment Tax & Quarterly Estimated Payments (2026 1040-ES) — How much you’ll owe on 2026 freelance income — SE tax, income tax, QBI — and the exact quarterly payment the safe-harbor rules actually require.
- UK Self-Assessment First-Year Bill Calculator (payments on account) — Your real first-January Self Assessment bill — the year’s tax PLUS 50% of next year’s, due the same day — with the exact dated payment schedule.
Embed this calculator
Free to use on your own site. It keeps working as the rules change, because we maintain the data — no ads, no cookies, and a link back to the full tool.
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