About this Sales Tax / VAT
Whether you are pricing products for a store or calculating expense reports, handling Sales Tax and Value Added Tax (VAT) is a daily task. This tool helps you add tax to a net price or strip tax from a gross price.
Who this calculator is for
- Retailers and operators pricing products before or after tax.
- Finance and bookkeeping teams checking tax-inclusive and tax-exclusive totals.
- Anyone who needs to reverse tax from a receipt or quote without doing the math manually.
When to use it
- Add sales tax, VAT, or GST to a pre-tax price.
- Remove tax from a gross price to recover the untaxed base amount.
- Validate invoice, checkout, or expense totals across markets with different rates.
How to use this calculator
- Enter the Amount.
- Enter the Tax Rate % (e.g., 20% for UK VAT, 7% for US Sales Tax).
- Select Add Tax to go from Net to Gross.
- Select Remove Tax to go from Gross to Net.
Key assumptions
- This calculator applies one flat tax rate to the full amount you enter.
- It does not model tax-exempt line items, tiered tax rules, or multi-rate invoices.
- Amounts must be non-negative, and the tax rate must be zero or greater.
Accuracy and testing
Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.
How this calculator works
1. Add Tax: Total = Net * (1 + Rate/100).
2. Remove Tax: Net = Gross / (1 + Rate/100). Tax = Gross - Net.
Inputs explained
Amount
The monetary value you want to convert.
Tax Rate
The percentage rate charged by the government (VAT, GST, Sales Tax).
Action
Choose whether the amount entered is before tax (Net) or after tax (Gross).
Understanding your results
The Final Amount is the total including tax (or the base excluding tax). The Tax Amount is the specific portion of money that goes to the government.
Example scenarios
Add Tax
$100 Net + 10% Tax = $110 Total. Tax is $10.
Remove Tax
$110 Gross with 10% Tax = $100 Base. Tax is $10 (NOT $11).
Key Features
- Reverse Tax Logic
- Net & Gross Display
- Universal (VAT/GST/Sales Tax)
Tips & Best Practices
- Be careful when removing tax: The tax amount is smaller than simply multiplying the gross by the rate. $110 * 10% = $11, which is incorrect for reverse calculation.
- VAT rates vary by country (e.g., UK 20%, Germany 19%, Canada GST 5%).
Glossary of Terms
- Net Price
- The price of a good or service before tax is added.
- Gross Price
- The final price paid by the consumer, including tax.
- VAT
- Value Added Tax. A consumption tax placed on a product whenever value is added at each stage of the supply chain.