VAT & Sales Tax Calculator
Calculate VAT or sales tax on any amount. Enter the net price and tax rate to see the gross price with tax included, and the tax amount.
How to Use
1
Enter the amount (net price for add mode, gross price for remove mode).
2
Enter the tax rate percentage.
3
Select Add Tax or Remove Tax.
4
Click Calculate.
5
Review the net amount, tax amount, and gross amount.
Formula
Add Tax
Gross = Net × (1 + Rate/100), Tax = Gross − Net
Remove Tax
Net = Gross ÷ (1 + Rate/100), Tax = Gross − Net
Example Calculation
If a product costs $100.00 (net) and the VAT rate is 20%:
Gross Price = $100 × 1.20 = $120.00
Tax Amount = $120 − $100 = $20.00
To reverse it: if the price is $120.00 (gross):
Net Price = $120 ÷ 1.20 = $100.00
Tax Amount = $120 − $100 = $20.00
Gross Price = $100 × 1.20 = $120.00
Tax Amount = $120 − $100 = $20.00
To reverse it: if the price is $120.00 (gross):
Net Price = $120 ÷ 1.20 = $100.00
Tax Amount = $120 − $100 = $20.00
Why It Matters
VAT and sales tax calculations are essential for businesses, freelancers, and consumers. Whether you are setting prices, preparing invoices, or checking receipts, knowing how to add or remove tax accurately helps you stay compliant and avoid pricing errors.
Who Uses This Calculator?
- • People comparing loan, mortgage, salary, savings, tax, or investment scenarios before making a money decision.
- • Homeowners, borrowers, employees, freelancers, and small business owners who need fast estimates without a spreadsheet.
- • Anyone who wants to understand the inputs, formula, and tradeoffs behind a financial result.
Frequently Asked Questions
What is VAT?
VAT (Value Added Tax) is a consumption tax applied to goods and services at each stage of production or distribution. It is used in over 160 countries worldwide. The standard rate varies by country: 20% in the UK, 19% in Germany, 21% in Spain, 25% in Sweden. Some countries call it GST (Goods and Services Tax) instead.
How do I calculate sales tax?
Multiply the pre-tax price by the tax rate (as a decimal). For example, 8% sales tax on $50 = $50 × 0.08 = $4.00 in tax, making the total $54.00. To find the original price from a total that includes tax, divide by (1 + tax rate): $54 ÷ 1.08 = $50.
What is the standard VAT rate?
Standard VAT rates vary by country: UK is 20%, EU countries range from 17% (Luxembourg) to 27% (Hungary). Many countries also have reduced rates for essentials like food, books, and medicine. Check your local tax authority for the current applicable rates.
How to remove VAT from a price?
Divide the gross (tax-inclusive) price by (1 + VAT rate/100). For example, to remove 20% VAT from €120: €120 ÷ 1.20 = €100. The VAT amount is the difference: €120 − €100 = €20. This is useful when you have a retail price and need to find the pre-tax amount.
What is the difference between tax-inclusive and tax-exclusive?
Tax-exclusive means the stated price does not include tax — tax is added at checkout (common in the US). Tax-inclusive means the stated price already includes tax (common in the EU and many other regions). This calculator handles both: use "Add Tax" for exclusive prices and "Remove Tax" for inclusive prices.
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This calculator provides estimates for informational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.