Understanding VAT: Formulas and Country Rates
VAT Calculation Formulas
To convert from pre-tax (HT) to tax-inclusive (TTC) price:
TTC = HT x (1 + VAT rate / 100)
To extract the pre-tax price from a TTC amount:
HT = TTC / (1 + VAT rate / 100)
Standard VAT Rates by Country
| Country | Standard | Reduced |
|---|---|---|
| France | 20% | 5.5% / 10% |
| Germany | 19% | 7% |
| United Kingdom | 20% | 5% |
| Spain | 21% | 10% / 4% |
| Italy | 22% | 10% / 4% |
When Are Reduced Rates Applied?
Reduced VAT rates apply to essential goods and services such as food, books, medicine, and public transport. Each country maintains its own list of eligible items. In the EU, member states may apply one or two reduced rates, but these must not be lower than 5%. Some countries also have super-reduced or zero rates for specific catégories.