Indexo School · Lesson 5

VAT and the invoice: excluding VAT, including VAT

Updated on 26 October 2026

21% VAT on €100.00 excluding VAT gives €121.00 including VAT. And €121.00 including VAT gives back €100.00 excluding VAT: you divide by 1.21, you do not take off 21%.

Here is how VAT moves between businesses and the consumer, the Belgian rates, the two calculations to know and what an invoice must contain.

1. Who pays VAT?

At each stage (manufacturer, wholesaler, shopkeeper), the business adds VAT to its selling prices and deducts the VAT paid on its purchases. It pays the difference to the FPS Finance in its monthly or quarterly return (the VAT return). At the end of the chain, only the final consumer really pays it: they cannot deduct anything.

2. Belgian rates

The standard rate is 21%. Reduced rates of 12% and 6% apply to certain goods and services. In a shop, the price shown to consumers always includes VAT.

3. The two calculations

Rate	VAT	Price including VAT	To get back to the price excluding VAT
6%	€6.00	€106.00	€106.00 ÷ 1.06 = €100.00
12%	€12.00	€112.00	€112.00 ÷ 1.12 = €100.00
21%	€21.00	€121.00	€121.00 ÷ 1.21 = €100.00

For €100 excluding VAT

The common mistake: taking 21% off €121.00 gives €95.59, not €100.00. The 21% is calculated on the price excluding VAT, not on the price including VAT. For your own amounts: VAT calculator.

4. What an invoice must show

The date and a unique number, in sequence.
The seller’s name, address and VAT number; the customer’s name and address (and VAT number if VAT-registered).
What is sold, the quantity and the price excluding VAT.
The VAT rate and amount, and the total including VAT.

To make a complete invoice: create an invoice; to check one: check an invoice.

The exercises

Choose an exercise and a level, work it out, then enter your answers. Tick ‘Show the answers’ to see Indexo’s calculation. Teacher: the six-exercise worksheet and its answer key, to print.

The questions

Eight multiple-choice questions. Answer them, then tick ‘Show the answers’ to read the explanations. Teacher: the quiz and its answer key, to print.

Frequently asked questions

Which products are at 6% or 12%?

The list is set by law and changes from time to time. For a given product, check with the FPS Finance; the exercises give the rate to use.

Can a private individual recover VAT?

No: only a VAT-registered business deducts VAT on its business purchases. The private individual is the final consumer.

What next?

To finish: the test20 points on the five lessons, in two versions.
VAT calculatorExcluding VAT, including VAT, for your own amounts.
For teachersThe six-session sequence, the worksheets and the answer keys.

Sources

Parameters in force on 1 October 2026. Each parameter links to its source, the official one where it exists; a secondary source is flagged as such.

Règles et taux de TVA : Belgique, taux normal 21 %, taux réduits 6 et 12 %, European Commission (Your Europe).