VAT / GST Calculator

Quickly find the price before or after tax. This **VAT / GST calculator** lets you instantly **add tax** to a net price or **remove tax** from a gross price. Perfect for invoices, shopping, and business accounting.

Enter Price & Tax Rate

Add or remove sales tax from a price.

Total (Tax Included)

$0

Net Price: $0
VAT/GST Amount: $0

What is a VAT / GST Calculator?

A **VAT / GST Calculator** is a simple and essential tool for businesses and consumers alike. It performs two very specific functions: it lets you **add tax** to a net price to find the total gross price, or it lets you **remove tax** from a gross price to find the original net price. VAT (Value Added Tax) and GST (Goods and Services Tax) are both common types of **sales tax** used worldwide, and this calculator works for either one.

What is the Formula for the VAT / GST Calculator?

The math is simple, but it's different depending on whether you are adding or removing the tax. The most common mistake is using the wrong formula when trying to remove tax.

1. Formula to ADD VAT/GST

This is used when you have the pre-tax price (Net Price) and want to find the final price (Gross Price).

Gross Price = Net Price × (1 + Tax Rate)

2. Formula to REMOVE VAT/GST

This is used when you have the final price (Gross Price) and want to find the original price (Net Price).

Net Price = Gross Price / (1 + Tax Rate)

In both cases, the "Tax Rate" is the percentage as a decimal (e.g., 20% = 0.20).

Solved Examples

Example 1: Adding Tax

You want to sell a product for $1,000 and need to **add** 20% VAT.

Gross Price = $1,000 × (1 + 0.20) = $1,000 × 1.20 = $1,200

Tax Amount = $1,200 - $1,000 = $200

Example 2: Removing Tax

You bought an item for $1,200, which *included* 20% VAT, and you want to **remove** the tax to find the original price.

Net Price = $1,200 / (1 + 0.20) = $1,200 / 1.20 = $1,000

Tax Amount = $1,200 - $1,000 = $200

Note: You do NOT calculate $1,200 * 20% ($240). This is the most common error. The 20% was applied to the *original* $1,000 price, not the final $1,200 price.

Use Cases / Practical Applications

This **sales tax calculator** is used daily by millions of people:

  • Business Owners: For creating invoices, pricing products, and doing bookkeeping.
  • Shoppers: To figure out the "sticker price" of an item when the listed price doesn't include tax.
  • Tourists: To calculate how much of a VAT refund they might be eligible for on purchases made abroad.
  • Accountants: For quickly filing tax returns and verifying sales records.

Standard or Common Reference Values

VAT and GST rates vary significantly by country and sometimes even by product (e.g., food vs. luxury items). Here are some common standard rates:

  • United Kingdom (VAT): 20% (Standard Rate)
  • Canada (GST/HST): Varies by province, from 5% (Federal GST) to 15% (HST in Atlantic provinces).
  • Australia (GST): 10%
  • India (GST): Slabs of 5%, 12%, 18%, and 28%.
  • European Union (VAT): Varies by member state, but typically between 19% and 27%.
  • United States (Sales Tax): Varies by state and city, typically from 0% to over 10%.

Frequently Asked Questions (FAQ)

1. What's the difference between VAT and GST?

Functionally, VAT (Value Added Tax) and GST (Goods and Services Tax) are very similar. They are both types of consumption taxes. The name just depends on the country. For example, the UK and EU use VAT, while Canada, Australia, and India use GST. This **vat calculator** works for both.

2. How do you calculate the price *before* tax (tax-exclusive)?

To **remove tax** (e.g., 20% VAT) from a final price, you divide the final price by (1 + tax rate). For example, if the final price is $120 and the tax rate is 20% (0.20), you calculate: $120 / 1.20 = $100. The original price was $100 and the tax was $20.

3. What is a 'tax inclusive' price?

"Tax inclusive" means the price you see already includes the VAT or GST. This is the "Gross Price." To find the original price, you would use the "Remove VAT/GST" function. "Tax exclusive" means the tax will be added at the checkout.

After calculating your tax, you might need to find your profit. Use our Profit Margin Calculator or Discount Calculator to complete your business pricing.

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