Adding VAT to a price
If you have a price without VAT and want to know the final price, multiply by 1 plus the rate as a decimal. For example, at 21%: final price = price without VAT × 1.21.
| Price without VAT | Rate | Final price |
|---|---|---|
| €50 | 21% | €60.50 |
| €50 | 10% | €55.00 |
| €50 | 4% | €52.00 |
Removing VAT from a final price
This is where most people go wrong: if you have the final price (VAT already included) and want to know the base, don't subtract the percentage directly. You need to divide by 1 plus the rate as a decimal.
The classic mistake: from €121, many people subtract 21% (€25.41) and think the base is €95.59. That's incorrect — the real base is €100. The 21% was calculated on the base, not the final price, so you divide (121 ÷ 1.21 = 100), you don't subtract.
The three VAT rates in Spain
- Standard (21%): most goods and services.
- Reduced (10%): hospitality, passenger transport, some foods.
- Super-reduced (4%): basic foods, books, medicine.
Calculate it directly
Instead of doing it by hand, you can use the VAT calculator: enter the amount, choose the rate, and get the base, VAT amount, and total instantly, in both directions (add or remove).