VAT calculator
Calculate VAT, net or gross amounts in seconds, then use the page to confirm the right rate, deduction logic and the points that actually affect cash flow.
Convert net amounts to gross and gross amounts to net in seconds.
Compare the main French VAT rates with the right context.
Clarify collected VAT, deductible VAT, VAT credits and the exemption regime.
Quick answer
How do you calculate French VAT (20%, 10%, 5.5%, 2.1%)?
To go from net to gross, multiply the amount excluding VAT (HT) by (1 + rate): €2,500 × 1.20 = €3,000 including VAT (TTC). To go from gross to net, divide by (1 + rate): 3,000 ÷ 1.20 = €2,500, not 3,000 × 0.8 (€2,400, which is wrong). The VAT amount is the difference between the two; at 20% it also equals the gross price ÷ 6, here €500.
- Net to gross
- Gross = net × (1 + rate)
- Gross to net
- Net = gross ÷ (1 + rate)
- VAT inside a 20% gross price
- VAT = gross ÷ 6
Reviewed by Samuel Hayot, chartered accountant (Ordre des experts-comptables), last updated
Net, gross, output VAT and input VAT: what the calculator handles
In France, prices are quoted either excluding VAT (hors taxes, HT) or including VAT (toutes taxes comprises, TTC). The net price is the tax base; VAT is added on top to give the gross price the end customer pays. VAT is a consumption tax: a VAT-registered business charges it to customers and pays it over to the State. It is neither income nor a cost for the business, unless it cannot be recovered.
Output VAT (TVA collectée) is the VAT you charge on sales; input VAT (TVA déductible) is the VAT you paid on business purchases and can reclaim. Net VAT due is the difference. When input VAT exceeds output VAT, you have a VAT credit (crédit de TVA), which is carried forward or refunded depending on the case.
The calculator on this page covers the three conversions (net to gross, gross to net, VAT amount to net base) at the four rates that apply in mainland France, then deducts the input VAT you enter. It does not pick the rate for you and does not cover the specific rates used in Corsica and the French overseas departments.
French VAT formulas
- Gross from net
- Gross = net × (1 + rate); at 20%: net × 1.20
- Net from gross
- Net = gross ÷ (1 + rate); at 20%: gross ÷ 1.20
- VAT from net
- VAT = net × rate
- VAT included in a gross price
- VAT = gross × rate ÷ (1 + rate); at 20%: gross ÷ 6; at 10%: gross ÷ 11
- Net base from a VAT amount
- Net = VAT ÷ rate; at 20%: VAT × 5
- VAT payable for the period
- Net VAT due = output VAT − input VAT
- VAT credit
- If input VAT > output VAT: credit = input − output
Rates are written as decimals in the formulas: 20% = 0.20; 10% = 0.10; 5.5% = 0.055; 2.1% = 0.021. Multiplying a gross price by (1 − rate) always understates the net price, because VAT is computed on the net amount, not on the gross one.
Work out the VAT on a transaction in 5 steps
The arithmetic takes a second. What matters is what comes before it (the right rate) and after it (the right return). This is the order we follow to secure an invoice or a VAT return.
- 1
Qualify the transaction before choosing a rate
First check whether the supply is taxable in France (place-of-supply rules), exempt, or subject to the reverse charge (autoliquidation). A service billed to a business in another EU member state, for instance, is normally invoiced without French VAT and the customer self-accounts for it.
- 2
Apply the rate for the exact goods or service
The rate depends on what is sold, not on the seller’s sector: a restaurant charges 10% on meals but 20% on alcoholic drinks. An invoice mixing several rates must show the net amount and the VAT for each rate.
- 3
Pick the right direction
Start from the net amount when you issue a quote or invoice; start from the gross amount when you analyse a receipt or a retail price. In the second case, divide by (1 + rate) and never apply a percentage discount.
- 4
Round to the cent, per rate
Compute VAT on the net total for each rate, then round to the nearest cent. Rounding each line and adding them up can produce a few cents of difference: choose one method and keep it consistent in your invoicing software.
- 5
Match output and input VAT for the period
At the end of the month or quarter, total the output VAT that has become chargeable and the input VAT backed by compliant invoices. The difference is what you pay. For services, VAT normally becomes chargeable when payment is received: an unpaid invoice is not declared yet, unless you opted for VAT on invoicing (option pour les débits).
Worked example: a €2,500 net invoice at the four rates
Take the simulator default value: €2,500 excluding VAT. The table shows the gross amount at each rate, the reverse calculation from the gross price, then the VAT payable if the business holds €180 of input VAT on its purchases for the month.
| Operation | Calculation | Result |
|---|---|---|
| VAT at 20% | 2,500 × 0.20 | €500 (gross: €3,000) |
| VAT at 10% | 2,500 × 0.10 | €250 (gross: €2,750) |
| VAT at 5.5% | 2,500 × 0.055 | €137.50 (gross: €2,637.50) |
| VAT at 2.1% | 2,500 × 0.021 | €52.50 (gross: €2,552.50) |
| Net from €3,000 gross (correct) | 3,000 ÷ 1.20 | €2,500 net |
| Net from €3,000 gross (wrong) | 3,000 × 0.80 | €2,400 net, a €100 error |
| VAT included in €3,000 gross | 3,000 ÷ 6 | €500 |
| VAT payable for the month | 500 − 180 | €320 |
Reading: the “× 0.8” shortcut understates the net price by 4% at a 20% rate (€100 on €3,000). When annual revenue is rebuilt from VAT-inclusive receipts, that error flows into margin, forecasts and sometimes the return itself. On the cash side, the €500 of VAT collected does not belong to the business: only €320 is paid over this month because €180 of VAT has already been advanced to suppliers.
The four VAT rates in mainland France and their conversion factors
Rates in force in 2026 in mainland France. The scope of each rate is summarised: every reduced rate comes with conditions and exceptions to check transaction by transaction.
| Rate | Main scope | Gross to net | VAT share of gross price |
|---|---|---|---|
| 20% (standard rate) | Most goods and services: consulting, IT, non-food retail, alcoholic drinks | ÷ 1.20 | 1/6, i.e. 16.67% |
| 10% | Restaurants (excluding alcohol), hotel accommodation, passenger transport, improvement works on homes over 2 years old, non-reimbursable medicines | ÷ 1.10 | 1/11, i.e. 9.09% |
| 5.5% | Food products (with exceptions), books, energy-renovation works on homes over 2 years old, feminine hygiene products | ÷ 1.055 | 5.5/105.5, i.e. 5.21% |
| 2.1% | Medicines reimbursed by French social security, eligible press publications | ÷ 1.021 | 2.1/102.1, i.e. 2.06% |
Corsica and the overseas departments (Guadeloupe, Martinique, La Réunion) apply specific rates; French Guiana and Mayotte are temporarily outside the VAT scope. Source: BOFiP, VAT rates (French official tax doctrine).
Best practices for reliable VAT calculations
- Quote and negotiate net of VAT with business customers: VAT is neutral for them if they recover it, and your margin is read excluding VAT.
- Set the rate once per product or service in your invoicing software rather than typing it by hand on each invoice.
- Keep a written note justifying every reduced rate you use (nature of the goods, customer certificate for works on homes, for example).
- Set aside output VAT in a separate account as soon as it is collected: it is money to pay over, not available cash.
- Before reclaiming input VAT, check that the supplier invoice is compliant (VAT number, breakdown by rate, date) and that the expense is not excluded from recovery.
- Under the VAT exemption scheme (franchise en base), track cumulative revenue monthly so you see the switch to VAT coming rather than discovering it at year-end.
- Reconcile output VAT with revenue every quarter: an inconsistent average rate often signals a wrong rate or a timing error.
The most common French VAT calculation mistakes
Taking 20% off a gross price
€3,000 gross × 0.8 = €2,400 is wrong. VAT is computed on the net amount, so you must divide by 1.20 (€2,500). At 10%, the same shortcut (× 0.9) understates the net price by about 1%.
Assuming the VAT inside a gross price is 20% of it
At 20%, VAT is 1/6 of the gross price, i.e. 16.67%. That is also why a VAT refund can never reach 20% of the price paid.
Using the sector’s rate instead of the transaction’s rate
The same customer can buy at several rates: a meal at 10% and wine at 20%, energy-renovation works at 5.5% and equipment at 20%. A single rate across a whole invoice is a classic audit point.
Declaring VAT on invoices instead of payments for services
For services, VAT becomes chargeable when payment is received (unless you opted for VAT on invoicing). Declaring on invoices issued means advancing cash to the tax office; declaring on payments without having set it up creates a timing gap to correct later.
Adding up line-by-line roundings without checking
Rounding the VAT on each line and adding the results can differ by a few cents from the VAT computed on the total per rate. Small, but it breaks automated reconciliations, especially with e-invoicing.
A VAT calculator is mainly useful to avoid wrong assumptions
VAT looks simple when reduced to a percentage on an invoice. In practice, mistakes usually come from the wrong rate, a weak view of place-of-supply rules, a deduction taken too fast or poor monitoring of the exemption regime. This page is meant to connect invoicing, filing and cash flow, not just produce a quick number.
Which rates matter in 2026?
Official French guidance confirms a standard 20% VAT rate in mainland France, plus reduced rates of 10% and 5.5%, and a specific 2.1% rate for limited cases. Strong VAT work always starts with the correct rate.
- 20% for the large majority of goods and services.
- 10% and 5.5% for specific sectors and legally defined operations.
- 2.1% for narrower cases that should be documented carefully.
Collected VAT, deductible VAT and VAT credits
A business needs more than the right invoice amount. It must also distinguish what is collected on sales, what can actually be deducted on purchases and when a VAT credit may appear. That is where margin and cash flow often move.
- Poor VAT allocation shows up later in margin or filing corrections.
- Not every expense gives the same right to deduct VAT.
- A VAT credit can be offset or sometimes refunded depending on the case.
Exemption regime and e-invoicing
French guidance also states that from September 1, 2026, e-invoicing will concern VAT-registered businesses, including those benefiting from the exemption regime. Many independents still assume that not charging VAT keeps them outside the topic. It does not.
- Being exempt from charging VAT does not remove the need for billing discipline.
- The VAT regime still depends on activity and thresholds.
- The 2026 reform makes clean accounting and billing data more important than ever.
What to validate before trusting the result
A VAT calculator gives a quick answer. Serious VAT management then requires validating the real business context: the correct rate, territorial rules, any exemption, deduction rights and the filing calendar.
- The correct rate for the exact nature of the goods or services.
- The VAT regime applicable to the business and the transaction.
- The real right to deduct VAT on business purchases.
- The cash-flow impact of the calculation and the future filings.
VAT calculator FAQ
What are the main VAT rates to know in mainland France?
The standard rate is 20%, with reduced rates of 10% and 5.5%, plus a specific 2.1% rate for limited cases. The correct rate always depends on the exact transaction.
If I benefit from the exemption regime, do I still need to monitor VAT?
Yes. Even if you do not charge or remit VAT under that regime, VAT still matters for thresholds, purchases, professional clients and your preparation for e-invoicing.
Can a business recover all VAT on its purchases?
No. Some expenses are excluded or restricted. Passenger cars, some director or employee benefits and mixed-use expenses are common traps.
How do you get the price excluding VAT from a price including VAT?
Divide the gross price by (1 + VAT rate). At 20%: net = gross ÷ 1.20; at 10%: ÷ 1.10; at 5.5%: ÷ 1.055; at 2.1%: ÷ 1.021. Example: €1,200 including 20% VAT is €1,000 excluding VAT plus €200 of VAT.
Why shouldn’t you multiply a gross price by 0.8 to remove French VAT?
Because 20% VAT is calculated on the net price, not on the gross price. Taking 20% off the gross removes too much: €1,200 × 0.8 = €960, while the real net price is 1,200 ÷ 1.2 = €1,000. The error is 4% of the net amount and distorts margins, quotes and returns.
How do you calculate the VAT included in a gross price?
Use VAT = gross × rate ÷ (1 + rate). At 20%, that means dividing the gross price by 6; at 10%, by 11. Example: a €66 restaurant bill (10% rate) contains €6 of VAT on a €60 net price.
What are the French VAT exemption thresholds in 2026?
In 2026 the thresholds of the VAT exemption scheme (franchise en base) remain those of 2025: €85,000 of revenue for sales and accommodation (upper threshold €93,500), and €37,500 for services and liberal professions (upper threshold €41,250). The single €25,000 threshold proposed in the 2025 Finance Act was abandoned. Above the upper threshold, VAT is due from the day it is exceeded.
How do you work out the VAT payable to the French tax office?
VAT payable = output VAT on sales for the period − input VAT on purchases for the same period. Example: €4,000 collected and €1,500 deductible means €2,500 to pay. If input VAT is higher, you have a VAT credit, carried forward to later returns or claimed as a refund.
When is French VAT due: on invoicing or on payment?
For sales of goods, VAT is chargeable on delivery, which in practice means at invoicing. For services, it is chargeable when payment is received, unless the business opted for VAT on invoicing. A consultant who bills €10,000 net in December and is paid in January declares that VAT in January.
How should VAT be rounded on invoices and returns?
On the invoice, VAT is calculated per rate on the net total and rounded to the nearest cent; the invoice must show, for each rate, the net total and the corresponding VAT. On the French VAT return, amounts are reported in whole euros, rounded to the nearest euro.
Can non-EU visitors get a VAT refund in France, and how much?
Yes, if you live outside the EU, are at least 16 and stay in France for less than 6 months. Purchases must exceed €100 including VAT (€100.01 minimum) at a retailer offering tax-free shopping (détaxe), with an export sales form issued through the PABLO system and validated before the end of the 3rd month after purchase. The refund is at most the VAT, i.e. 1/6 of the price at 20%, minus any refund operator fees: never the full 20%.
Sources
Related resources
Looking for a quick number or a VAT setup you can rely on?
We help businesses secure rates, deduction rights, documentation and filing calendars so VAT stops damaging margin or cash flow later on.