Finance

VAT / Sales Tax Calculator

Add or remove VAT and sales tax from any price

$
%

Common rates

Net (pre-tax)

$100.00

before tax

Tax (20%)

$20.00

tax amount

Gross (inc. tax)

$120.00

total payable

Tax is 16.67% of the gross total

For informational purposes only. Not financial advice. Consult a qualified professional.

VAT & Sales Tax Calculator

This calculator lets you add tax to a net (pre-tax) amount, or remove tax from a gross (tax-inclusive) amount. Enter any amount and tax rate, or choose from the presets for common VAT rates around the world.

The Two Calculations

Adding tax (net → gross):

Gross = Net × (1 + rate ÷ 100)

Tax amount = Gross − Net

Example: £100 net + 20% VAT = £120 gross. Tax = £20.

Removing tax (gross → net):

Net = Gross ÷ (1 + rate ÷ 100)

Tax amount = Gross − Net

Example: £120 gross ÷ 1.20 = £100 net. Tax = £20.

A common mistake is to calculate 20% of £120 (= £24) rather than dividing by 1.20 (= £20). Always divide by (1 + rate) to extract tax from a gross amount.

Common VAT Rates Worldwide

  • United Kingdom: 20% standard, 5% reduced
  • Germany: 19% standard, 7% reduced
  • France: 20% standard, 5.5% reduced, 2.1% super-reduced
  • Australia (GST): 10%
  • Canada (GST): 5% federal (provinces add HST/PST)
  • India (GST): 5%, 12%, 18%, or 28% depending on goods
  • UAE (VAT): 5%
  • Singapore (GST): 9%

Frequently Asked Questions

What is VAT?
VAT (Value Added Tax) is an indirect consumption tax levied on the value added to goods and services at each stage of the supply chain. It is the most widely used tax system in the world — over 160 countries use it, including all EU member states, the UK, Australia (as GST), Canada (as GST/HST), and many others. The US notably does not have a federal VAT, but states levy their own sales taxes.
How do I add VAT to a price?
To add VAT: multiply the net (pre-tax) price by the VAT rate and add the result. Formula: Gross = Net × (1 + rate). For example, a £100 item with 20% UK VAT: £100 × 1.20 = £120 gross. The VAT amount is £20.
How do I remove VAT from a VAT-inclusive price (reverse VAT)?
To remove VAT from a gross price: divide the gross amount by (1 + rate). Formula: Net = Gross ÷ (1 + rate). For example, a £120 VAT-inclusive price at 20%: £120 ÷ 1.20 = £100 net. The VAT content is £20. This is called the reverse VAT calculation or "extracting VAT".
What is the difference between VAT and sales tax?
VAT is collected incrementally at each stage of the supply chain — every business in the chain pays VAT on their purchases but can reclaim it from the tax authority. Only the end consumer bears the full cost. Sales tax (used in the US) is usually collected only at the final point of sale to the consumer. The end result to the consumer is similar, but the mechanism and compliance obligations for businesses differ significantly.
What are the UK VAT rates?
The UK has three VAT rates: Standard rate (20%) for most goods and services; Reduced rate (5%) for things like home energy, children's car seats, and some sanitary products; and Zero rate (0%) for most food, books, children's clothes, and public transport. Some items are exempt from VAT entirely (financial services, education, healthcare).

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