VAT calculator
Add VAT to a price or extract it from a VAT-inclusive total. Includes the rates in force in Spain (21%, 10% and 4%) and accepts any other percentage.
What VAT is and why it shows up on almost everything you buy
VAT (Value Added Tax) is an indirect tax on consumption. The shop doesn't really pay it; you do, as the final customer. The business simply collects it and hands it over to the tax authority. That's why, when you see a "VAT included" price, part of that amount never stays with the shop: it travels on to the taxman. Knowing how that price splits is useful whether you issue invoices or just want to know what something really costs before tax.
The VAT rates in Spain
Spain works with three VAT rates, plus exempt transactions. Each product or service is assigned one by law, and getting it right matters: a mistake on an invoice can cause trouble with the tax office.
- Standard (21%). The default: clothing, electronics, appliances, fuel, alcohol and most professional services.
- Reduced (10%). Hospitality and restaurants, passenger transport, event tickets, new-build housing or prescription glasses.
- Super-reduced (4%). Basic essentials: ordinary bread, milk, eggs, fruit, vegetables, books, newspapers and medicines for human use.
- Exempt (0%). Some activities carry no VAT at all, such as regulated education, healthcare or insurance.
Adding VAT: from net to gross
You start from the net amount, the price before tax, and add the right percentage:
Total = Net × (1 + rate ÷ 100)A €100 service at the standard 21% rate: the VAT is 100 × 21 ÷ 100 = €21, and the total is €121.
Removing VAT: from gross to net
This is the calculation most people get wrong. When you already have a VAT-inclusive price and want the net figure, you don't subtract 21%. You divide:
Net = Total ÷ (1 + rate ÷ 100)A €121 invoice with 21% included has a net base of 121 ÷ 1.21 = €100, and the VAT contained is €21.
The classic mistake: why you don't just subtract 21%
It's tempting to think that if adding VAT means "add 21%", removing it means "subtract 21%". It doesn't work that way, because that 21% was calculated on the net amount (€100), not on the total (€121). Subtract 21% from €121 and you get €95.59, a figure that matches no real net base. That's why, to strip out VAT, you always divide by 1.21 (or by 1.10 and 1.04 for the reduced and super-reduced rates).
| Rate | To add VAT, multiply by | To remove VAT, divide by |
|---|---|---|
| Standard — 21% | 1.21 | 1.21 |
| Reduced — 10% | 1.10 | 1.10 |
| Super-reduced — 4% | 1.04 | 1.04 |
Common questions
Is VAT the same across all of Spain? No. The Canary Islands don't use VAT but a local tax called IGIC, with lower rates; Ceuta and Melilla use the IPSI. This calculator uses the mainland and Balearic VAT rates.
Why is there sometimes a one-cent difference? When you divide to strip out VAT, the net base can carry many decimals. Invoices round to two, so a tiny difference from the exact figure is perfectly normal.