How to add VAT to a net price

When a price is stated before tax:

VAT = net price x rate / 100
gross total = net price + VAT

At 16%, a net price of 500 gives 500 x 0.16 = 80 in VAT and a total of 580. For a quotation of 3,250, VAT is 520 and the gross total is 3,770.

The multiplier shortcut combines both steps:

gross total = net price x 1.16

Replace 1.16 with the multiplier for the applicable rate. A professional quotation should distinguish the taxable base, rate, tax amount and final total. If several rates apply, calculate each line or tax base separately rather than applying one rate to the entire invoice.

Use the VAT calculator and verify current rates and invoice requirements with the relevant national tax authority.