VAT calculator: formula and calculator
Calculating VAT is done using two fixed formulas: you multiply an amount excluding VAT by 1.21 or 1.09 to arrive at the amount including VAT, and you divide an amount including VAT by 1.21 or 1.09 to calculate back to the amount excluding VAT.
The VAT amount itself is the difference between those two amounts. Calculate it directly below using the calculator, or go through the formulas, the memory aid and the rates for 2026 step-by-step.
VAT calculator: calculate VAT inclusive or exclusive
With the VAT calculator below, you can calculate the amount including VAT, the amount excluding VAT and the VAT amount itself all at once. Enter an amount, choose the rate of 21% or 9% and indicate whether the amount is inclusive or exclusive of VAT.
The calculator immediately shows all three amounts, so you can see exactly how a price is structured. This is useful when preparing a quote, checking an invoice or recalculating a receipt.
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How do you calculate VAT?
You always calculate VAT on the amount excluding VAT, which is the price before tax is added. VAT stands for Value Added Tax and is officially called turnover tax: as an entrepreneur, you add the VAT to your selling price and charge it to your customer.
When you file your tax return, you pay the VAT you received to the Tax and Customs Administration, minus the VAT you yourself paid on business expenses, the input tax. The VAT you calculate is therefore money that you pay later, not turnover.
Many entrepreneurs therefore keep that portion separate until they file their tax return, for example in a separate business account. Those who want to keep VAT, salaries and business expenses completely separate sometimes work with multiple business accounts or separate pots per purpose.
VAT calculation formula for 21% and 9%
The formula for calculating VAT depends on the direction you are calculating: adding VAT to an amount, or extracting VAT. When adding, you multiply the amount by a factor; when calculating backwards, you divide the amount by that same factor.
The standard rate is 21% and the reduced rate is 9%, so you calculate using 1.21 or 1.09. Below are the three calculations you will need most often: the amount including VAT, the VAT amount itself, and calculating backwards to excluding VAT.
Calculating including VAT
You calculate including VAT by multiplying the amount excluding VAT by 1.21 for the standard rate, or by 1.09 for the reduced rate. An amount of 100 euros excluding VAT thus becomes 100 x 1.21 = 121 euros including 21% VAT.
With the reduced rate, that same amount becomes 100 x 1.09 = 109 euros. This is the calculation you use to determine your selling price or your invoice amount.
Calculating the VAT amount
You calculate the VAT amount by multiplying the amount excluding VAT by 0.21 for 21%, or by 0.09 for 9%. On 100 euros excluding VAT, that is 100 x 0.21 = 21 euros VAT.
If you only know the amount including VAT, you first divide it by 1.21 or 1.09 and subtract the result from the total. This way you know exactly which part of an amount consists of VAT.
Calculate VAT backwards: extracting VAT from an amount
Calculating VAT backwards means extracting the VAT from an amount inclusive of VAT, so that you are left with the amount exclusive of VAT and the VAT amount. You can use this, for example, to check a purchase invoice or receipt, or to see how much VAT you can reclaim.
Importantly: do not just subtract 21% from the total amount. The amount inclusive of VAT is 121% of the price exclusive of VAT, so you calculate backwards from that 121% and not from 100%.
Calculating the amount exclusive of VAT
You calculate the amount exclusive of VAT by dividing the amount inclusive of VAT by 1.21 for 21%, or by 1.09 for 9%. For example, an amount of 121 euros inclusive of 21% VAT becomes 121 : 1.21 = 100 euros exclusive of VAT, with 21 euros of VAT.
If you divide by 1.21 instead of subtracting 21%, the result is always correct. For the lower rate, you divide in the same way by 1.09.
Mnemonic to calculate VAT
The rule of thumb for calculating VAT: divide the amount including VAT by 121 and multiply by 21 to find the VAT amount at 21%. For 9%, divide by 109 and multiply by 9. On an amount of 121 euros including 21% VAT, this gives 121 : 121 x 21 = 21 euros VAT.
This allows you to extract the VAT amount from a total in a single step, without first determining the amount excluding VAT. The Tax and Customs Administration uses the same ratio of 21 to 121 for the high rate, so you calculate it exactly the way the tax authorities do.
Calculation examples for calculating VAT
With a few calculation examples, you can see how calculating VAT works in practice, in both directions and at both rates. A laptop of 800 euros excluding VAT costs 800 x 1.21 = 968 euros including 21% VAT, of which 168 euros is VAT. If you calculate from the selling price, you immediately know what amount you pay to the Tax and Customs Administration.
A hairdresser visit of 35 euros including 9% VAT contains 35 : 109 x 9 = 2.89 euros of VAT, as hairdressing services fall under the low rate. And on a purchase invoice of 363 euros including 21% VAT, the amount excluding VAT is 363 : 1.21 = 300 euros, with 63 euros of VAT that you can reclaim as input tax.
Which VAT rate should you use in 2026?
Which VAT rate you apply depends on what you sell: the Netherlands has three rates in 2026. The high rate applies to the vast majority of goods and services; the low rate and the zero rate are exceptions that are specifically defined by law.
21% (high rate): applies to most goods and services, such as electronics, clothing, furniture and software.
9% (low rate): applies to food, books, medicines, passenger transport and the hairdresser, among other things.
0% (zero rate): applies, among other things, to the export of goods to countries outside the EU.
Since 1 January 2026, accommodation such as hotels, guest houses and holiday homes is subject to 21% instead of 9%; campsites remain at 9%. In addition, some services are completely exempt from VAT, for example in healthcare and education. If you are in doubt about the correct rate for your product or service, the Dutch Tax and Customs Administration (Belastingdienst) provides clarification on a case-by-case basis.
Calculate VAT on your invoice
On your invoice, you state the amount excluding VAT, the VAT percentage, the VAT amount, and the total including VAT as separate lines. This is a legal obligation, so that your customer can see exactly how much VAT they are paying and what amount they might be able to reclaim.
Your VAT identification number should also be on the invoice, and for business customers, you include their VAT number as well. Keeping neat, separate records makes calculating your VAT a lot easier, especially if you file a return every quarter.
For self-employed professionals, it is also good to know when a business account is mandatory, as that depends on your legal form and on what clients require.
Common mistakes when calculating VAT
Most errors in VAT calculation arise because you calculate over the wrong amount or choose the wrong rate. You encounter these three most often in practice.
VAT on an inclusive amount: always calculate VAT on the amount excluding VAT, not on the total including VAT, otherwise you are double counting.
Deducting 21% from the total: when calculating back, you divide by 1.21, because the total is 121%; simply deducting 21% results in a VAT amount that is too low.
Rounding too early: only round the VAT amount to two decimal places after you have done the full calculation, otherwise small differences will add up.
Track VAT with a business account
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FAQ
Frequently asked questions about calculating VAT
Do you calculate your VAT on the amount including or excluding VAT?
You always calculate VAT on the amount excluding VAT. That is the price before the tax is added. You then add the VAT to get the amount including VAT. If you calculate VAT on an amount that already includes VAT, you will be calculating it twice and the amount will be too high.
How do you check if your VAT calculation is correct?
Your VAT calculation is correct if you get the same result in both directions. Calculate from exclusive to inclusive using 1.21 and then back by dividing by 1.21: if you arrive at the same amount, then the calculation is correct. This double check catches calculation and rounding errors immediately.
What is the mnemonic rule for calculating VAT backwards?
The rule of thumb for calculating VAT backwards: divide the amount including VAT by 121 and multiply by 21 for 21% VAT, or divide by 109 and multiply by 9 for 9% VAT. You divide by 121 because the amount including VAT is always 121% of the net price, so you isolate the VAT portion in one step.
Does 9% or 21% VAT apply to my product or service?
For most products and services, 21% VAT applies. The low rate of 9% applies to, among other things, food, books, medicines, passenger transport and the hairdresser. If you are in doubt, the high rate of 21% usually applies; the Tax and Customs Administration provides a definitive answer for each product or service.
Do you need to round VAT amounts?
You round VAT amounts to two decimal places, but only after you have done the full calculation. Intermediate rounding leads to small errors that add up on an invoice with multiple lines. Always state the VAT amount with two decimal places, even if the result is a round number.
How much VAT do you pay as a sole trader under the KOR?
With the small businesses scheme (KOR) you do not calculate or pay VAT, as long as your turnover remains below 20,000 euros per calendar year. Usually you do not need to file a VAT return, but you can also not reclaim the VAT on your business expenses and investments.
