VAT and GST Calculator

What is vat and gst calculator?

VAT (value added tax) and GST (goods and services tax) are sales taxes used in many countries, including the UK, EU countries, Canada, Australia, India and New Zealand. Businesses often need to move between prices with tax and prices without it.

This calculator works both ways. Add tax to a net price to find what a customer pays, or take tax out of a gross price to find the net amount and the tax you collected.

How to use the vat and gst calculator

1. Choose add or remove.
2. Enter the amount and the tax rate.
3. Read the net amount, tax and total.

How the vat and gst calculator works

Adding tax: tax equals net times rate divided by 100, and gross equals net plus tax. Removing tax: net equals gross divided by one plus rate divided by 100, and tax equals gross minus net.

Worked example

Common uses of the vat and gst calculator

• Pricing products for customers when your prices are quoted without tax.
• Finding the tax part of a receipt for expense claims.
• Checking an invoice from a supplier.
• Comparing prices across countries with different tax rates.
• Learning how value added tax works through a supply chain.

Tips and common mistakes

Do not subtract the rate from a gross price. Taking 20 percent off 120 gives 96, which is wrong. Always divide by 1.20.

Rates differ by country and by product. Check your tax authority for the correct rate.

Background: what to know before you rely on it

Value added tax is collected at each step of production and sale, but businesses can reclaim the tax they pay on their inputs, so the final cost falls on the consumer. Over 170 countries use VAT or GST. Rates differ by country and sometimes by product, with lower rates for food, books or medicine. In the United States, sales tax is added only at the final sale and differs by state. When you remove tax from a gross price, divide by one plus the rate. Many people subtract the rate by mistake, which gives a slightly wrong net price. Always confirm the current rate with your tax authority.

Private, free and fast

This tool runs entirely in your browser. What you type or choose is not uploaded to a server and is not saved after you close the page, which keeps it fast and private. It is free to use as often as you like. See more in all finance calculators, or browse the full list of tools.

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Results are for information and education. For legal, financial, medical or security decisions, check with a qualified professional. Estimates only. Confirm with your lender or accountant.