VAT Calculator Online

Multiply the net amount by the VAT rate (e.g. 20%) and add the result to the net amount. Example: €1,000 + 20% = €1,000 + €200 = €1,200 VAT inclusive.

Divide the gross (VAT-inclusive) price by (1 + VAT rate as a decimal). For 20% VAT, divide by 1.20. Example: €1,200 / 1.20 = €1,000 (net) and €200 (VAT).

Split payment is a VAT collection mechanism used mainly in Italy and some other EU countries. The buyer (typically a public authority) pays the net amount to the supplier and remits the VAT directly to the tax authority. This prevents VAT fraud by ensuring the tax is always collected, even if the supplier defaults.

Reverse charge shifts the VAT liability from the seller to the buyer. The seller invoices without VAT, and the buyer self-assesses the VAT, recording it as both output tax (payable) and input tax (deductible). It applies in construction (subcontracting), scrap metals, energy trading, mobile phones and microprocessors (above threshold), and all cross-border B2B services within the EU.

When a VAT-registered business in one EU country sells to a VAT-registered business in another EU country, the seller invoices without VAT. The buyer applies reverse charge using their domestic VAT rate. The seller reports the transaction in their EC Sales List. The buyer records the VAT as both output and input tax, making the operation VAT-neutral.

25% — Sweden, Denmark, Norway, Croatia.
20% — UK, France, Austria.
19-22% — Germany (19%), Italy (22%), Spain (21%).
5-10% — Canada GST (5%), Australia GST (10%), Japan (10%).

Split payment: the seller invoices with VAT shown, but the buyer (public authority) pays the VAT directly to the tax office instead of to the seller.
Reverse charge: the seller invoices without VAT, and the buyer self-assesses the VAT. Used in specific sectors and for intra-EU B2B transactions.
In both cases the seller doesn't collect VAT, but the mechanisms and contexts differ.