How to Calculate VAT: Add It to a Price or Take It Out
Updated October 2026
VAT (value added tax) is a percentage on top of a price. Adding it is easy. Taking it out of a price that already includes it is where people go wrong. This guide shows both, with examples you can check yourself.
Add VAT to a price
Multiply the price without VAT by 1 plus the rate as a decimal. At 21% VAT you multiply by 1.21.
- Price without VAT: 100
- VAT: 100 x 0.21 = 21
- Price with VAT: 100 x 1.21 = 121
Take VAT out of a price
Divide the price with VAT by 1 plus the rate. At 21% VAT you divide by 1.21.
- Price with VAT: 121
- Price without VAT: 121 / 1.21 = 100
- VAT: 121 - 100 = 21
The common mistake is to subtract 21% from 121. That gives 95.59, which is wrong, because the 21% was calculated on 100 and not on 121.
Quick reference
| Rate | Price without VAT to price with VAT | Price with VAT to price without VAT |
|---|---|---|
| 9% | multiply by 1.09 | divide by 1.09 |
| 19% | multiply by 1.19 | divide by 1.19 |
| 20% | multiply by 1.20 | divide by 1.20 |
| 21% | multiply by 1.21 | divide by 1.21 |
Rates differ per country and per type of product, and they change from time to time. Check the website of your tax authority for the current rate that applies to you.
Which price do I show customers?
Shops that sell to consumers usually show the price with VAT. Businesses selling to other businesses often show the price without VAT. If you are not sure what applies to your situation, ask your accountant or the tax authority.
If you only need to work out a percentage of an amount, the percentage calculator does that for any number.
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