How to add or remove VAT
| Task | Formula | UK example (20%) | Netherlands example (21%) |
|---|---|---|---|
| Add VAT | net × (1 + rate) | £250 × 1.20 = £300 | €100 × 1.21 = €121 |
| VAT on a net price | net × rate | £250 × 0.20 = £50 | €100 × 0.21 = €21 |
| Remove VAT | gross ÷ (1 + rate) | £300 ÷ 1.20 = £250 | €121 ÷ 1.21 = €100 |
| VAT inside a gross price | gross − gross ÷ (1 + rate) | £300 − £250 = £50 | €121 − €100 = €21 |
To remove VAT, divide by 1.20 (or 1.21). Never multiply by 0.80 (or 0.79).
Multiplying £300 by 0.80 gives £240, which is £10 too low. The mistake happens because 20% of the gross price is larger than 20% of the net price. In the UK, the VAT inside a 20% gross price is exactly one-sixth of it (£300 ÷ 6 = £50). HMRC calls this the VAT fraction.
VAT rates in this calculator
| Country | Standard | Reduced | Notes |
|---|---|---|---|
| United Kingdom | 20% | 5%, 0% | 5% on home energy and some other goods; 0% on most food, books and children's clothes |
| Netherlands (BTW) | 21% | 9%, 0% | 9% on food, books and medicines. Short-stay accommodation moved to 21% on 1 January 2026 |
| Germany | 19% | 7% | 7% on most food and books |
| France | 20% | 10%, 5.5%, 2.1% | Several reduced rates by product |
| Belgium | 21% | 12%, 6% | 6% on many essentials |
Pro-tip for businesses: sales between VAT-registered businesses in different EU countries are often invoiced under the reverse-charge rule, with no VAT charged. A calculator cannot tell whether that applies to you; check with the Belastingdienst, HMRC or your accountant.
Check before you file: rates and the goods each rate covers change. Confirm on GOV.UK (UK) or belastingdienst.nl (Netherlands) before invoicing or completing a VAT return.
Frequently asked questions
How do I calculate 20% VAT?
Multiply the net price by 0.20 to get the VAT, or by 1.20 to get the price including VAT. £250 plus 20% VAT is £300.
How do I remove VAT from a price?
Divide the gross price by 1 plus the VAT rate: by 1.20 for UK 20% VAT, or by 1.21 for Dutch 21% BTW. £300 ÷ 1.20 = £250.
What is the BTW rate in the Netherlands?
The standard BTW rate is 21% and the reduced rate is 9%. Some goods and services are 0% or exempt. Short-stay accommodation moved from 9% to 21% on 1 January 2026.
Why is VAT one-sixth of the price?
At a 20% rate, a gross price is 120% of the net price, so the VAT (20) is 20 ÷ 120 = one-sixth of the gross. At 21%, the VAT is 21 ÷ 121 of the gross.