About the VAT Calculator
Value added tax (VAT), called GST in Australia, New Zealand, Canada and India, is added on top of the net price of most goods and services. Invoices usually have to show the net amount, the tax and the gross total separately, so you often need to work backwards from a price that already includes tax.
This calculator works in both directions, takes any rate (including decimals such as 8.875%), and rounds the tax to the cent the way you choose. It works for US sales tax too: use Add VAT with your combined state and local rate.
How to use
- Choose the direction: Remove VAT if your price already includes tax, Add VAT if you have the net price.
- Enter the amount and the tax rate, or tap one of the common rates.
- Read the net amount, the tax and the gross total. Tap Copy result to paste them into an email or spreadsheet.
- For a quote or invoice, fill in the line items table. Tick Prices include VAT if your unit prices are gross prices.
VAT formulas
| You want | Formula | Example at 20% |
|---|---|---|
| VAT on a net price | net × rate | 100 × 0.20 = 20 |
| Gross from net | net × (1 + rate) | 100 × 1.20 = 120 |
| VAT inside a gross price | gross × rate ÷ (1 + rate) | 120 × 20 ÷ 120 = 20 |
| Net from gross | gross ÷ (1 + rate) | 120 ÷ 1.20 = 100 |
A common mistake is to take 20% off a gross price: 120 − 24 = 96 is wrong. The VAT is 20% of the net price, which is 1/6 of the gross price at a 20% rate.
Standard rates in English-speaking countries
| Country | Tax | Standard rate |
|---|---|---|
| United Kingdom | VAT | 20% (reduced 5%) |
| Ireland | VAT | 23% (reduced 13.5%, 9%) |
| Australia | GST | 10% |
| New Zealand | GST | 15% |
| Canada | GST / HST | 5% GST, 13–15% HST in some provinces |
| South Africa | VAT | 15% |
| United States | Sales tax | Set by state and city, 0% to about 10% |
Rates change from time to time, so check your tax authority for the current rate for your product.
FAQ
How do I remove 20% VAT from a price?
Divide the gross price by 1.2. For £120 that gives a net price of £100 and £20 VAT. Don't subtract 20% of the gross price, which would give the wrong answer of £96.
Should the tax be rounded up, down or to the nearest cent?
Most tax authorities expect normal rounding to the nearest penny or cent, and that is the default here. You can switch to rounding down or up if your accounting system works differently.
Why does the line-item total differ slightly from a single calculation?
VAT is rounded on every line. The rounded amounts can add up to a cent or two more or less than the tax on the grand total. Invoices usually show the per-line or per-rate amounts, as calculated here.
Is my data saved?
Your last inputs and line items are stored only in this browser so you can continue later. Nothing is sent to a server.