VAT-Inclusive vs VAT-Exclusive Pricing
VAT-inclusive (gross) prices include tax and are what end consumers typically see. VAT-exclusive (net) prices exclude tax and are common in B2B transactions. To convert from exclusive to inclusive: multiply by (1 + VAT rate). For example, €100 net at 21% VAT = €121 gross. To go the other way: divide the inclusive price by (1 + VAT rate). Most EU countries require consumer-facing prices to be displayed VAT-inclusive. In B2B contexts, prices are often quoted excluding VAT as businesses can reclaim input tax.