Free VAT Calculator โ Add or Remove Tax Instantly in 2026
Value Added Tax (VAT) is a consumption tax applied at each stage of production and sale. For freelancers and small businesses, calculating VAT accurately is essential for compliance, invoicing, and profitability. Our free VAT calculator handles both adding and removing VAT in seconds.
What is VAT?
VAT (Value Added Tax) is an indirect tax collected by businesses on behalf of the government. It is charged on most goods and services and is ultimately paid by the end consumer. Businesses collect VAT from customers, deduct the VAT they have paid on their own purchases, and pay the difference to the tax authorities.
How to Calculate VAT
- โAdding VAT: Gross = Net ร (1 + VAT% / 100). Example: ยฃ1000 + 20% VAT = ยฃ1200
- โRemoving VAT: Net = Gross รท (1 + VAT% / 100). Example: ยฃ1200 รท 1.20 = ยฃ1000
- โVAT Amount (adding): VAT = Net ร (VAT% / 100)
- โVAT Amount (removing): VAT = Gross - (Gross รท (1 + VAT% / 100))
VAT Rates by Country (2026)
| Country | Standard Rate | Reduced Rate | Zero Rate |
|---|---|---|---|
| United Kingdom | 20% | 5% | 0% |
| France | 20% | 5.5% / 10% | 0% |
| Germany | 19% | 7% | 0% |
| Spain | 21% | 10% | 0% |
| Italy | 22% | 10% | 0% |
| Morocco | 20% | 14% / 10% | 0% |
| Australia (GST) | 10% | N/A | 0% |
| Canada (GST) | 5% | Varies | 0% |
Common VAT Mistakes to Avoid
- โUsing the wrong rate โ always verify current rates as they change yearly
- โConfusing VAT-inclusive and VAT-exclusive prices on invoices
- โNot registering for VAT when your turnover exceeds the threshold
- โForgetting to reclaim VAT on business purchases
- โRounding errors โ always round to 2 decimal places
- โApplying VAT to exempt goods โ food, books, and children's clothes are often exempt