What is the difference between VAT and sales tax?

VAT (Value Added Tax) is collected at every stage of the supply chain, with businesses reclaiming tax paid on their inputs. Sales tax is collected only at the final point of sale to the consumer. From a consumer's perspective, both result in a percentage added to the price — this calculator works for either.

How do I add VAT to a net price?

Multiply the net price by (1 + rate/100). For example, $100 + 20% VAT = $100 × 1.20 = $120. The calculator does this automatically when you select "Add VAT to amount."

How do I remove VAT from a gross price?

Divide the gross price by (1 + rate/100). For example, $120 including 20% VAT: $120 ÷ 1.20 = $100 net. A common mistake is subtracting the percentage directly — $120 minus 20% gives $96, which is wrong.

What VAT rate should I use?

It depends on your country and the type of goods or services. Common standard rates: UK 20%, Germany 19%, France 20%, Spain 21%, India 18% GST, US varies by state (5-10% sales tax). Many countries also have reduced rates for essentials like food or books.

Can I use this for GST?

Yes. GST (Goods and Services Tax) is mathematically identical to VAT — it is a percentage added to or included in a price. Enter your GST rate and the calculator works the same way. Common GST rates: Australia 10%, India 5%/12%/18%/28%, Canada 5%.

FINFinancial

VAT / Sales Tax Calculator

Add or remove VAT/sales tax from any amount. Enter a net price to see the total with tax, or enter a gross price to find out how much tax is included. Works with any tax rate.

Currency

Amount

VAT / Tax Rate

Calculation Mode

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How It Works

Formula

\text{Gross} = \text{Net} \times \left(1 + \frac{\text{Rate}}{100}\right)

\text{Net} = \frac{\text{Gross}}{1 + \dfrac{\text{Rate}}{100}}

Where

$\text{Net}$: Price before tax
$\text{Gross}$: Price including tax
$\text{VAT}$: Tax amount (Gross − Net)
$\text{Rate}$: VAT or sales-tax rate (percent)

Choose whether to add VAT to a net amount or remove VAT from a gross amount, then enter the amount and the tax rate. The calculator instantly returns the net amount, the tax amount, and the gross amount.

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