Invoice in EUR
Bill in euro with VAT, a VAT number, SEPA details and the reverse charge.
Add tax to a price, or take it out of one, and see both figures at once.
The Invoice Tax Calculator adds tax to a net price and strips it out of a gross one at the same time, preventing the commonest invoice error there is — multiplying a tax-inclusive price by the rate, which gives £24 on a £120 price that contains £20.
The mistake this prevents is worth naming: taking a tax-inclusive price and multiplying it by the tax rate. A £120 price that already includes 20% tax contains £20 of tax, not £24 — because the tax is 20% of the £100 net, not of the £120 gross. Getting this backwards understates your net revenue and overstates what you owe, every time.
So this works in both directions at once. Enter a net price and it adds the tax; enter a gross price and it divides it out; and either way you see the net, the tax and the gross together, with the arithmetic shown rather than asserted.
It handles any rate, including the awkward ones — Switzerland’s 8.1%, India’s 0.25% on rough diamonds, Nigeria’s 7.5% — and rounds to the number of decimals the currency actually has, which is where a multi-currency invoice quietly goes a cent out.
So the wrong one is visible rather than assumed.
Divide by one plus the rate, not multiply by the rate.
Including fractional ones like Switzerland’s 8.1% and Nigeria’s 7.5%.
Rounded to the decimals the currency actually has.
Every step, so the figure can be checked rather than trusted.
Whatever figure you have — net or gross, it does not matter.
Tax-exclusive means tax gets added; tax-inclusive means it is already in there.
Any rate, including fractional ones. Common national rates are one click away.
Net, tax and gross, with the working shown.
The panel shows what the other direction would have given, which is the usual error.
Divide by one plus the rate to get the net, then subtract. At 20%, £120 ÷ 1.2 = £100 net and £20 tax. Multiplying £120 by 20% gives £24 and is the commonest tax error on an invoice.
Multiply by the rate and add it, or multiply by one plus the rate. At 20%, £100 becomes £120.
Prices shown to consumers must include it in the UK, the EU and most of the world. Business-to-business prices are conventionally quoted excluding it. Whichever you use, say so on the invoice.
To the number of decimals the currency has, and once — rounding each line and then the total can leave the invoice a cent away from its own arithmetic. Some jurisdictions specify line-level rounding, so check yours.
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