Complete guide: VAT
Updated:
VAT is a consumption tax calculated as a percentage of the taxable base. With a base of 100 and a 21% rate, tax is 21 and the total is 121. This calculator lets you choose the direction without confusing net and gross prices.
To remove VAT, do not subtract the percentage from the total: divide by one plus the rate. A total of 121 including 21% VAT contains a base of 100 and tax of 21; subtracting 21% directly gives the wrong base.
The tax rate depends on country, product, exemptions and date. The initial 21% is an editable example, not a universal rate. Enter the rate on your invoice or confirmed by the tax authority; invoices with multiple rates must be broken down separately.
How it works
- 1Add VAT: total = base × (1 + rate/100).
- 2Remove VAT: base = total ÷ (1 + rate/100); VAT = total − base.
Frequently asked questions
How do I remove 21% VAT from 121?
Divide 121 by 1.21. The base is 100 and VAT is 21.
Does the rate depend on the country?
Yes, and also on the product and date. Enter the rate applicable to the transaction.
Can I calculate zero-rate VAT?
Yes. A 0% rate leaves the total equal to the base.