How tax is calculated
To add tax: gross = net x (1 + rate / 100). To remove tax: net = gross / (1 + rate / 100). Discount is applied before tax when entered.
Inclusive versus exclusive prices
A tax-exclusive price adds tax on top of the net amount. A tax-inclusive price already contains tax, so the calculator divides by the tax factor to recover the net amount.
Example
For a net price of 100, quantity 2 and a 20% VAT rate, the net line is 200, tax is 40 and gross is 240. If 240 is VAT-inclusive, the net line is 200 and the VAT amount is 40.
What this does not cover
VAT and sales tax rules vary by country, region, seller, buyer, product category, date and invoice rules. This calculator uses only the rate you enter and is not a compliance tool.
References
- Your Europe: VAT rules and rates, accessed 2026-05-16.
- European Commission: VAT for businesses, accessed 2026-05-16.
Last reviewed: 2026-05-16