VAT calculator

VAT calculation — adding or extracting

The standard VAT rate in Latvia is 21%. To add VAT, multiply by 1.21; to extract VAT from a gross amount, divide by 1.21 — do not subtract 21%, a common mistake. From €121 gross the net is exactly €100, while “121 − 21%” would give an incorrect €95.59.

The calculator works both ways and shows net, VAT and gross. In construction, reverse-charge VAT often applies between VAT payers in B2B deals — the invoice shows no tax and the recipient declares it. When in doubt about a specific deal, ask your accountant.

Adding and extracting VAT

Adding 21% VAT to €100 net gives €121 gross. To extract the net amount from €121 gross, divide by 1.21; the VAT element is €21. Simply subtracting 21% from the gross amount is incorrect.

The calculator shows net, VAT and gross in both directions. For special transactions, cross-border services or reverse-charge treatment, confirm the application with an accountant or the Latvian tax authority.

• Show the rate and amount clearly on the invoice.
• Round consistently to cents.
• Do not confuse VAT with markup or profit.