VAT / Sales Tax Calculator
Add tax vs. Remove tax calculator.
Add VAT (Net → Gross)
Net Amount (Exclude Tax) VAT Amount Gross Amount (Include Tax)Remove VAT (Gross → Net)
Gross Amount (Include Tax) VAT Amount Net Amount (Exclude Tax)Understanding Value Added Tax (VAT)
Value Added Tax (VAT), known as Goods and Services Tax (GST) or Sales Tax in some regions, is a consumption tax placed on a product whenever value is added at each stage of the supply chain. For the end consumer, it is simply a tax on the purchase price. Our **VAT Calculator** is an essential tool for business owners, freelancers, and shoppers.
Two Modes of Calculation
1. Add VAT (Net to Gross): Use this when you have a base price (e.g., $100) and need to issue an invoice with tax included. The tool calculates the tax amount and the final total price.
2. Remove VAT (Gross to Net): Use this when you have a receipt for a total amount (e.g., $115) and need to reverse-calculate how much of that was the actual price vs. the tax. This is crucial for businesses claiming back tax expenses.
2. Remove VAT (Gross to Net): Use this when you have a receipt for a total amount (e.g., $115) and need to reverse-calculate how much of that was the actual price vs. the tax. This is crucial for businesses claiming back tax expenses.
Global Tax Rates
Tax rates vary significantly by country. For example, the standard VAT rate is 20% in the UK, 19% in Germany, and 15% in Saudi Arabia. In the US, sales tax varies by state (often 6-10%). This tool allows you to input any custom custom percentage to suit your local laws.
Formulas
- Add Tax:
Price * (1 + Rate/100) - Remove Tax:
Price / (1 + Rate/100)
Note: A common mistake is trying to remove 20% tax by subtracting 20% from the total. That is incorrect! You must divide by 1.20 to get the correct pre-tax number.