Percentages
How do you add or remove VAT from a price?
Add or remove VAT / sales tax at any rate from any amount.
Quick answer
Adding VAT: gross = net × (1 + rate ÷ 100). €100 net at 22%: 100 × 1.22 = €122 (€22 tax). Removing VAT: net = gross ÷ (1 + rate ÷ 100). €122 at 22%: 122 ÷ 1.22 = €100 net.
Total with tax
20.00
- Tax (20%)
- $20.00
- Net amount
- 00.00
How it works
Italy uses 22% standard, 10% and 5% reduced, 4% minimum. Always know whether a displayed price is net or gross before comparing — B2B quotes and consumer shelf prices follow different conventions.
Freelancers: show net fee + VAT line on invoices so clients do not confuse your rate with the total due. Archive PDF receipts with a portable document scanner and sort quarters in office binders; a printing calculator on the desk catches running totals before filing. Cross-check supplier quotes — “€1,000” without “+ IVA” is a classic budget overrun.
The commonest mistake in this calculation is subtracting the rate instead of dividing by it. To take 22% VAT off a gross price you divide by 1.22, not multiply by 0.78 — on €122 the correct net is €100, while the shortcut gives €95.16 and quietly loses nearly five euros on every line. The gap widens with the rate and with the amount, which is why it shows up as an unexplained difference between a quote and an invoice. The rule to remember is that the percentage was added to the smaller number, so it has to be removed from the larger one by division.
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Frequently asked questions
Italian VAT rate on food?+
Basic groceries often 4% or 10%; restaurant meals 10%. Most goods default to 22%. Alcohol, sweets and non-essential items usually stay at the standard rate even in a supermarket basket.
Why not subtract 22% to remove VAT?+
22% was added to net, not taken from gross. Subtracting 22% of €122 gives €95.16 — wrong. Divide by 1.22. The same rule applies at 10% (÷ 1.10) and 4% (÷ 1.04).
VAT for freelancers in Italy?+
Most services are 22%. Forfettario operators generally do not charge VAT on invoices but cannot deduct input VAT either. Confirm regime and filing deadlines with your commercialista before quoting clients.
How does reverse charge work?+
In EU B2B cross-border services, the buyer accounts for VAT in their own return. Invoice shows 0% with a reverse-charge note — you still need the customer's valid VAT ID on file.
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