Multiply the net price by the VAT rate, then add the VAT amount to the net price to get the gross price. This is the common calculation for invoices that show VAT separately.

Example: Net price 100 at 20% VAT → VAT = 20 → Gross = 120

Divide the VAT-inclusive gross price by 1 plus the VAT rate as a decimal. Then subtract the net price from the gross price to find the VAT amount.

Example: Gross 120 at 20% VAT → Net = 120 ÷ 1.20 = 100 → VAT = 20

The net price is the amount before VAT. The gross price is the amount after VAT has been added. Business invoices often show both values, while consumer prices in many VAT countries are displayed as gross prices already including VAT.

It depends on the country, seller, and customer type. Retail prices in many VAT systems include VAT, while business-to-business prices may be shown without VAT and list the VAT amount separately on the invoice. Always check whether a price is marked as VAT-inclusive or VAT-exclusive.

Countries set their own VAT rates within local or regional rules. Many countries also use reduced VAT rates for categories such as food, books, medicine, passenger transport, or hospitality. Use the country preset as a starting point, but choose the reduced or custom rate when the product or service is taxed differently.

Use the rate that applies in the tax jurisdiction and product category for the sale. Standard VAT rates are common for general goods and services, but reduced or zero rates may apply to specific categories depending on local law.

Yes. Some sales can be zero-rated, meaning the VAT rate is 0%. This is different from simply ignoring VAT — zero-rated sales can still have tax reporting requirements depending on the country.

VAT is based on the taxable value before VAT. That net amount is the base used to calculate the VAT amount, which is then added to produce the gross total. This means the VAT percentage always refers to the net, not the gross price.