VAT and Tax Calculator

VAT / Tax Calculator

Please enter valid positive values.

VAT and Tax Calculator — Add or Remove Tax Instantly

Our VAT/tax calculator works in both directions: add tax to a net (pre-tax) price to find the gross amount you'll pay, or remove tax from a gross (tax-inclusive) price to find the underlying net amount. Select from common rate presets (5%, 10%, 12%, 15%, 18%, 20%, 28%) or enter any custom rate.

Adding Tax: Net to Gross

When a product is priced at $100 (net/exclusive) with a 20% VAT, the customer pays $120 (gross/inclusive). The formula is: Gross = Net × (1 + Rate/100). This is "tax-exclusive" pricing — common in B2B contexts, invoices, and countries where prices are shown before tax.

Removing Tax: Gross to Net

When you know the final price including tax and want to find the pre-tax base, use the removal formula: Net = Gross ÷ (1 + Rate/100). For example, a $120 total with 20% VAT means the net was $100 and the tax was $20. This is commonly needed for accounting and invoicing.

VAT vs. GST vs. Sales Tax

  • VAT (Value Added Tax): Used in most of Europe, Asia, Africa, and Latin America. Applied at each stage of production, with businesses claiming back input tax. Standard EU rates typically range 17–27%.
  • GST (Goods and Services Tax): The name used in India, Australia, Canada, Singapore, and New Zealand. Functionally similar to VAT. India's GST has slabs of 5%, 12%, 18%, and 28%.
  • Sales Tax (USA): Applied only at the final point of sale. Rates vary by state and county — typically 4–10%.

Common Tax Rates by Country

UK: 20% standard VAT | Germany: 19% | France: 20% | India GST: 18% (standard) | Australia GST: 10% | Singapore GST: 9% | Canada GST: 5%

Frequently Asked Questions

What is the difference between tax-inclusive and tax-exclusive pricing?
Tax-exclusive prices (net) show the base price before tax is added. Tax-inclusive prices (gross) already include the tax. Retail stores typically show tax-inclusive prices; invoices and B2B quotes often show tax-exclusive prices.
Why can't I just divide by the tax rate to remove it?
Because the tax was calculated on the net, not the gross. Removing 20% of $120 gives $96 — which is wrong. The correct net is $120 ÷ 1.20 = $100. Always divide by (1 + rate) to remove tax correctly.
Does this work for GST as well as VAT?
Yes. The math is identical. Enter your GST rate (e.g., 18% for India, 10% for Australia) and use the same add/remove modes.
What are common VAT rates in Europe?
Standard EU VAT rates range from 17% (Luxembourg) to 27% (Hungary). The UK's standard VAT is 20%, Germany's is 19%, France is 20%. Many countries have reduced rates of 5–10% for essentials like food and medicine.
Can I use this calculator for any currency?
Yes. The calculator works with any currency. Just treat the "$" symbol as your local currency — the percentage calculation is currency-agnostic.