Whether it is called VAT, GST or sales tax, the same two questions recur on every invoice and quote: what does this price become with tax added, and how much of this tax-inclusive price is actually the tax? This calculator answers both directions at any rate. Enter a net amount to see the tax and the gross; or enter a gross amount to extract the net and the tax portion — the reverse calculation businesses need for bookkeeping, expense claims and margin work. Preset rates cover the common standards (20%, 15%, 10%, 5%), and a custom rate field handles every other jurisdiction on Earth.
Quick Answer: Enter an amount and a tax rate to add VAT/GST to a net price or remove it from a gross price — net, tax and gross shown together.
Free Online Tool
VAT/GST Calculator
Net, tax, gross — all three, both directions, no ÷1.2 headaches.
How to Use the VAT/GST Calculator
- Choose the direction: add tax to a net price, or remove tax from a gross price.
- Enter the amount you have.
- Select a preset rate or type your jurisdiction’s exact rate.
- Read all three figures: net, tax amount and gross.
- Use the tax figure directly on your invoice, quote or expense claim.
Key Features
- Both directions: add tax and extract tax, in one panel.
- Preset rates for common VAT/GST standards plus a custom rate.
- All three figures (net, tax, gross) always visible together.
- Correct reverse maths: extracting 20% tax divides by 1.20, never subtracts 20%.
- Private and instant — client pricing stays in your browser.
Best Practices and Tips
- The classic error: to remove 20% VAT from a gross price, divide by 1.2 — subtracting 20% of the gross understates the net and overstates the tax.
- Quotes should always state whether they include or exclude tax; this tool gives you both versions in seconds for the email you are writing.
- Mixed-rate baskets (standard and reduced items) must be taxed line by line, not on the blended total.
- Keep the rate current: rates change with budgets, and a stale preset is an invoice error with your name on it.
- For margins, work from the net: tax is money you collect for the state, never revenue.
Common Mistakes to Avoid
- Subtracting the percentage from a gross price instead of dividing, the most common bookkeeping error in small business.
- Adding tax to a price that already includes it, double-charging the customer and the tax authority’s patience.
- Applying one rate to a basket that legally mixes standard, reduced and zero-rated items.
- Rounding the tax per invoice differently from your accounting software, creating penny mismatches that multiply.
Frequently Asked Questions
How do I remove VAT from a price that includes it?
Divide the gross by (1 + rate/100). For 20%: gross ÷ 1.2 = net; the difference is the tax. This tool’s ‘remove tax’ direction does exactly that and shows the split — the method accountants and HMRC-style guidance prescribe.
How do I add VAT to a net price?
Multiply the net by (1 + rate/100): at 20%, net × 1.2 = gross, and the tax is the extra fifth. The ‘add tax’ direction computes all three numbers from your net figure.
Which rates are standard?
They vary by country: 20% is the UK standard VAT rate, 15% applies in New Zealand (GST) and Saudi Arabia, 10% in Australia (GST) and Japan, 5% is a common reduced/Gulf rate, and EU standards span 17-27%. The custom field covers any of them — and always confirm your current local rate.
Does this handle sales tax in the US?
The maths is identical (a percentage added to the price), though US sales tax varies by state and locality and is usually added at the till rather than included in shelf prices. Use the add-tax direction with your local combined rate.
Should invoices show the split?
In most VAT/GST regimes, yes: a compliant tax invoice shows the net amount, the tax amount and the gross, with the rate stated. The three figures this calculator produces are exactly the three lines your invoice needs.
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