By Debmedia Technologies LLP · Kolkata, India · Updated
What Is It and When Do You Need It?
VAT and sales tax add a percentage to the price of what you buy. Shops show prices with or without it depending on the country, and businesses need both figures for invoices and returns.
Enter the amount, the rate and whether it includes tax. You get the net price, the tax and the gross price.
How to Use This Tool
- Enter the amount.
- Enter the tax rate.
- Choose whether the amount is before or after tax.
- Press Calculate.
How the Calculation Works
Adding tax: tax = net × rate ÷ 100 and gross = net + tax. Removing tax: net = gross ÷ (1 + rate ÷ 100) and tax = gross − net.
Worked Example
A net price of 100 at 20% VAT is 120 gross, with 20 tax. A gross price of 108.25 at 8.25% sales tax is a net price of 100, with 8.25 tax.
Common Uses
- Invoices and receipts.
- Comparing prices between countries.
- Business accounts and returns.
- Checking a shop total.
Tips and Common Mistakes
- Divide, do not subtract, when removing tax.
- Check whether a listed price already includes tax.
- Reduced rates apply to some goods.
Related Tools
Next, you may need the GST calculator, discount calculator, profit margin calculator, tip calculator.
Everything runs in your browser. Nothing you type is uploaded, stored or sent to any outside service.
Frequently Asked Questions
Disclaimer: results are calculated in your browser from the numbers you enter. Check important results before you rely on them for money, health, safety or legal decisions.