Methodology
Last reviewed 16 October 2026
The formulas, the sources, and the honest limits — everything you need to reproduce any figure on this site by hand.
The formulas we use
- Add VAT: Gross = Net × (1 + rate ÷ 100); VAT = Gross − Net.
- Remove VAT: Net = Gross ÷ (1 + rate ÷ 100); VAT = Gross − Net.
- Flat rate scheme: VAT due = gross turnover × flat rate percentage (UK sectors; see the flat rate page).
Worked examples: at 20%, £100 net → £120 gross (VAT £20); at 23%, €246 gross → €200 net (VAT €46); at 5%, AED 1,050 gross → AED 1,000 net (VAT AED 50). Every result on the site follows these three lines — nothing else is applied.
Where the rates come from
Standard rates and thresholds are compiled from the official authority for each country, cross-checked against at least one independent source when a change is recent:
- United Kingdom: HMRC (gov.uk).
- Ireland: Revenue.ie. Germany: the Federal Ministry of Finance / BZSt.
- France: impots.gouv.fr. Spain: Agencia Tributaria. Italy: Agenzia delle Entrate. Netherlands: Belastingdienst.
- India: the GST Council / CBIC via gst.gov.in. Australia: ATO. UAE: Federal Tax Authority.
Reduced-rate summaries are simplified for orientation — the full category lists are long and change often, so each country page links to the authority for the definitive version.
Rounding policy
Calculations run at full precision; only the final display is rounded to two decimals using standard rounding. If you are reconciling to the cent against an invoice, compare using the unrounded figures — tiny differences in order of operations can shift a half-cent either way.
Corrections and version notes
When a rate changes or an error is confirmed, the fix follows a fixed path: correct the figure at its source (the page and the calculator preset), bump the last-reviewed date, and — if a figure a reader may have relied on was wrong — note the change briefly on the page. Corrections are usually live within days of being confirmed. Substantive changes to how this site works (a new source type, a new country, a new formula) are documented here as this page evolves.
What the tools deliberately do not do
- Multi-rate baskets: if a receipt mixes rates, split it by rate and calculate each part separately.
- Cross-border decision-making: our reverse charge guide explains the principle, but place-of-supply questions need professional advice.
- Special regimes: except for the UK flat rate scheme, sector schemes (margin schemes, agricultural flat rates, and similar) are out of scope.
- Live rate feeds: a static page cannot promise a rate that changed this morning. We date every review, and update when changes are announced — but the authority is the final word, always.