ToolSpotAI

VAT / Sales Tax Calculator

Add or remove VAT/sales tax from any price. Supports UK VAT, EU rates, US state tax, India GST, and custom rates.

Finance

Quick tax rates

Net (excl. tax)

£100.00

Tax amount

£20.00

20.00%

Gross (incl. tax)

£120.00

Breakdown

Price excluding tax£100.00
Tax (20.00%)£20.00
Price including tax£120.00
Tax rateNetTaxGross
5%£100.00£5.00£105.00
7%£100.00£7.00£107.00
10%£100.00£10.00£110.00
15%£100.00£15.00£115.00
19%£100.00£19.00£119.00
20%£100.00£20.00£120.00
21%£100.00£21.00£121.00
22%£100.00£22.00£122.00
25%£100.00£25.00£125.00

VAT (Value Added Tax) is used in the UK (20%), EU (15-27%), and many other countries. US sales tax varies by state (0-10.25%). GST (Goods and Services Tax) applies in India (5-28%), Australia (10%), and Canada (5%). Tax rates shown are standard rates — reduced rates may apply to certain goods and services.

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What is VAT / Sales Tax Calculator?

A VAT (Value Added Tax) and sales tax calculator helps you add tax to a net price, remove tax from a gross price, or determine the tax rate between two prices. VAT is used in 160+ countries worldwide, while sales tax is the primary consumption tax in the US. Our calculator includes preset tax rates for the UK (20% VAT), major EU countries (19-22%), US states, India GST, Canada GST, and Australia GST. Supports all four currencies and a comparison table showing your price at different tax rates.

How It Works

Choose a mode: Add Tax (enter net price), Remove Tax (enter gross price), or Find Rate (enter both prices). Select a preset tax rate or enter a custom rate. The calculator instantly shows the net price, tax amount, and gross price. A comparison table shows the same calculation at common tax rates for quick reference.

Formula

Add Tax: Gross = Net × (1 + Rate/100), Tax = Net × Rate/100
Remove Tax: Net = Gross / (1 + Rate/100), Tax = Gross − Net
Find Rate: Rate = ((Gross − Net) / Net) × 100

Formula Explained

Adding tax is straightforward multiplication. Removing tax requires division — a common mistake is subtracting the percentage from the gross. For example, removing 20% VAT from £120: correct is £120 ÷ 1.20 = £100 (not £120 − 20% = £96). The "find rate" formula divides the tax amount by the net price, not the gross price.

Example

Add 20% VAT to £100: Tax: £100 × 0.20 = £20.00 Gross: £100 + £20 = £120.00 Remove 20% VAT from £120: Net: £120 ÷ 1.20 = £100.00 Tax: £120 − £100 = £20.00 Find rate: Net £100, Gross £121: Rate: (£21 / £100) × 100 = 21%

Tips & Best Practices

  • ✓Always divide (not subtract) when removing VAT from a gross price.
  • ✓UK businesses must register for VAT if turnover exceeds £90,000.
  • ✓US sales tax varies by city — check your exact local rate.
  • ✓EU VAT rates range from 17% (Luxembourg) to 27% (Hungary).
  • ✓B2B EU sales may be VAT-exempt under the reverse charge mechanism.

Common Use Cases

  • •Adding VAT to invoices and quotes for UK/EU clients
  • •Removing VAT from receipts to find the net price
  • •Calculating US state sales tax for online purchases
  • •Comparing prices across countries with different tax rates
  • •Determining the tax rate applied to a purchase

Frequently Asked Questions

Multiply the net price by (1 + VAT rate). For UK 20% VAT: £100 × 1.20 = £120 gross. The VAT amount is £20. For any rate: Gross = Net × (1 + rate/100).

Divide the gross price by (1 + VAT rate). For UK 20% VAT: £120 ÷ 1.20 = £100 net. The VAT amount is £20. A common mistake is subtracting 20% of the gross (£24) — this gives the wrong answer.

The standard UK VAT rate is 20%. Reduced rate is 5% (children's car seats, home energy). Zero rate (0%) applies to most food, children's clothing, books, and newspapers. Some goods and services are VAT-exempt (education, health services).

Unlike VAT, US sales tax is added at the point of sale and varies by state (0-7.25% state rate) plus local taxes (total can reach 10.25%). Five states have no sales tax: Oregon, Montana, Delaware, New Hampshire, and Alaska (though Alaska allows local tax). Sales tax typically applies to goods, not services.

VAT (Value Added Tax) is collected at each stage of production and included in displayed prices (common in UK, EU). Sales tax is collected only at final sale and added on top of displayed prices (common in the US). Both are consumption taxes but VAT generates more revenue and is harder to evade.

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