Net and gross: how to calculate German VAT
VAT is always added to the net amount. Gross is the price with tax, net the price without tax.
From net to gross
Net amount times (1 + tax rate). At 19% the factor is 1.19, at 7% it is 1.07. Example: 250 € net times 1.19 gives 297.50 € gross.
From gross to net
Gross amount divided by (1 + tax rate). Example: 297.50 € divided by 1.19 gives 250 € net. The tax is the difference, here 47.50 €.
The most common mistake
When working backwards, people often just subtract 19% from the gross amount. That is wrong, because the 19% refers to the net amount. From 119 € you would be left with 96.39 € instead of 100 €.
Good to know
- If you show VAT on an invoice, net, tax rate and tax amount must be shown separately.
- Small businesses under section 19 UStG do not show VAT and must add a matching note.
- Amounts are rounded to the cent.
General calculation aid, not tax advice. For your own case, ask your tax office or a tax adviser. Updated: November 2026