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Tax & VAT Calculator

Calculate sales tax or VAT for any amount, inclusive or exclusive.

Easily add or remove tax from any price. Works for VAT, GST, and any sales tax globally.

Categories
Finance Tools
Amount (Tax Excl.)
Tax Rate (%)
Tax Inclusive
Original Price
$100
Tax (10%)
$10

Total Price
$110

Understanding Sales Tax and VAT

Sales tax and Value-Added Tax (VAT) are consumption taxes levied on the sale of goods and services. While they function differently behind the scenes (VAT is collected at every stage of production, while Sales Tax is only collected at the final point of sale), for the end shopper, they both represent a percentage added to the price of an item.

This calculator is designed to be universal, allowing you to calculate any percentage-based tax, whether it's called VAT, GST (Goods and Services Tax), or Sales Tax.

Two Ways to Calculate Tax

Depending on your situation, you may need to "Add Tax" or "Remove Tax."

1. Tax Exclusive (Adding Tax)

Use this when you know the price of an item before tax (the net price) and want to know what the total cost will be at the checkout.

  • Formula: Net Price × (1 + Tax Rate)
  • Example: A $100 widget with 10% tax = $100 × 1.10 = $110.

2. Tax Inclusive (Removing Tax)

Use this when you have a receipt or a price tag that already includes tax (the gross price) and you want to find out the original price or how much specific tax was paid.

  • Formula: Gross Price / (1 + Tax Rate)
  • Example: A $110 total with 10% tax = $110 / 1.10 = $100 original price.

Global Tax Examples

Tax rates vary significantly around the world. Here are some common examples:

  • United Kingdom: Standard VAT is 20%.
  • Vietnam: Standard VAT is 10%.
  • United States: Sales tax vary by state, often ranging from 0% to nearly 10%.
  • Australia: GST is flat at 10%.

Tips for Business Owners

  • Keep Records: Always track the amount of tax you collect versus the amount of tax you pay on expenses.
  • Understand Rounding: Different countries have different rules for rounding tax amounts (e.g., to the nearest cent or five cents).
  • Price Transparency: If you are selling to consumers (B2C), it is usually standard practice to show tax-inclusive prices. For B2B sales, tax-exclusive prices are common.

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