SellersCalc

Pricing math

VAT Price Calculator

The tax-inclusive price UK and EU customers must see — computed from your net price in one step.

Gross price = net price × (1 + VAT%). A product with a $100 net price under the UK’s 20% VAT rate sells at a $120 gross price, of which $20 is VAT you collect and remit — it is never your revenue. Unlike US sales tax, VAT-inclusive pricing is mandatory for consumer listings in the UK and EU, so the gross price is the one your product page must display. Enter your net price and the destination country’s rate to get the display price and the tax inside it.

VAT Price Calculator — your numbers

Gross price (customer pays)

$120.00

VAT amount

$20.00

Estimate only. Results reflect exactly the numbers you enter — verify against your own accounting before making pricing decisions.

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Worked examples

Selling into the UK at 20%

Net price $100.00
VAT rate 20%
Gross price (customer pays) $120.00
VAT amount $20.00

The customer pays $120; $20 of it is VAT owed to HMRC, not revenue.

Germany’s 19% standard rate

Net price $45.00
VAT rate 19%
Gross price (customer pays) $53.55
VAT amount $8.55

A $45 net price displays as $53.55 — the listing price German buyers see.

Frequently asked questions

Which VAT rate should I use?

The standard rate of the customer’s country: 20% in the UK, 19% in Germany, 21% in Spain and the Netherlands, up to 27% in Hungary. Many categories carry reduced rates — books, children’s goods, and food are common examples. Rates change with government budgets, so verify the current rate on the destination country’s tax authority site before pricing a new market.

How is VAT different from US sales tax?

Two big ways. VAT must be included in the displayed consumer price — advertising a net price and adding tax at checkout, the US norm, is non-compliant in the UK and EU. And VAT applies at every stage of the supply chain with credits for tax paid on inputs, whereas sales tax hits only the final retail sale. For a merchant the practical impact is the display rule and the remittance paperwork.

How do I get the net price back out of a VAT-inclusive price?

Divide, don’t subtract the percentage: net = gross ÷ (1 + rate). A $120 UK price divided by 1.20 gives the $100 net — taking 20% off $120 would wrongly give $96, because the 20% was charged on the net, not the gross. This reverse calculation is what you need when a marketplace reports VAT-inclusive payouts.

Do US-based sellers have to charge VAT on UK and EU orders?

Usually yes, from the first sale. The UK requires overseas sellers to register and charge VAT on consignments up to £135, and the EU’s IOSS scheme covers imports up to €150; above those values the carrier typically collects import VAT from the buyer instead. Marketplaces like Amazon and eBay collect it for you on qualifying orders. Thresholds and rules change — confirm the current scheme before your first cross-border listing.

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Part of the Pricing & Margins collection.