Calq.

VAT Calculator

Easily calculate the VAT amount and the price including or excluding VAT.

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Calculation based on

Results

Price excluding VAT
VAT Amount
Price including VAT

Introduction

Calq.’s VAT Calculator helps you add VAT to a net price or remove VAT from a tax-inclusive price. It is designed for business owners, freelancers, accountants, online sellers, and anyone who needs to convert between VAT-exclusive and VAT-inclusive amounts quickly and accurately.

In different regions this tax is known as VAT (Value Added Tax) in the UK/EU, GST (Goods and Services Tax) in Australia and Canada, and Sales Tax in the United States. Rates and rules vary by country and sometimes by state or province. This page explains general concepts that apply broadly; always check your local rules.

How it works

  1. Choose the calculation type:
    • Add VAT/GST/Sales Tax (start from a price excluding tax).
    • Remove VAT/GST (start from a price including tax).
  2. Enter the amount in your local currency.
  3. Enter the tax rate as a percentage (for example, enter 20 for 20%).
  4. The calculator returns the price excluding tax, the tax amount, and the price including tax.

Inputs explained

  • Amount
    The monetary value you are starting from. If you select “Add VAT”, enter the net price (excluding tax). If you select “Remove VAT”, enter the gross price (including tax).

  • Tax rate (%)
    The applicable rate for your goods or services. Use the correct local rate (for example, a standard, reduced, or zero rate). In places with multiple taxes, use the combined rate (e.g., GST + provincial/state tax).

  • Calculation type
    Choose whether you want to add tax to a net price or remove tax from a gross price. This ensures the correct formula is used.

Results and interpretation

  • Price excluding VAT (Net)
    The value before tax. Useful for supplier quotes, unit economics, and bookkeeping.

  • VAT amount (Tax)
    The tax collected on the sale or the portion of a tax-inclusive price that represents tax.

  • Price including VAT (Gross)
    The final price payable by a consumer. Useful for price tags, checkout totals, and invoices that must show tax-inclusive amounts.

Method and assumptions

  • When adding tax:

VAT amount = Net price × (Rate ÷ 100)
Gross price = Net price + VAT amount
  • When removing tax:

Net price = Gross price ÷ (1 + Rate ÷ 100)
VAT amount = Gross price − Net price
  • Percentages are entered as whole numbers (enter 20, not 0.20).
  • Results are typically rounded to 2 decimals. Some jurisdictions require rounding per line item, others at the invoice total. Small rounding differences are normal.
  • The calculator assumes a single, flat rate for the whole amount. It does not apply tiered rates or tax-on-tax unless you combine them into one percentage.
  • Figures are illustrative. Tax rules and rates change; confirm current rates and compliance details locally.

Finance and tax context

  • VAT and GST are consumption taxes charged on sales of most goods and services. Businesses registered for VAT/GST usually charge it on sales (output tax) and may reclaim VAT/GST paid on purchases (input tax), subject to local rules and exemptions.
  • “Zero-rated” items are taxed at 0% (taxable but at a zero rate). “Exempt” items are outside the scope of the tax system; input tax recovery may be limited. Always verify which category applies.
  • In Australia and many EU countries, consumer prices are often shown inclusive of tax. In the United States, shelf prices for goods commonly exclude Sales Tax, which is added at checkout. Canada may use GST alone or a combined HST/PST depending on the province. Enter whatever rate applies where the sale occurs.
  • Cross-border and B2B transactions can have special rules (e.g., reverse charge). This calculator handles the math but does not determine tax liability.

Tips and strategies

  • Use the correct rate for the product or service category; reduced or zero rates may apply to essentials in some regions.
  • If your area uses multiple taxes (e.g., GST + PST or state + local Sales Tax), add them together and enter the combined percentage.
  • For accurate invoicing, calculate tax per line item and round according to your local invoicing standard.
  • When removing tax from a gross price, ensure that price actually includes only the tax you are reversing and not additional fees.
  • Keep records of the rate used and the date, as rates can change and audits expect documentation.

Example calculations

Example 1: Add VAT (UK style)

  • Net price: £1,000.00
  • VAT rate: 20%
  • VAT amount = £1,000.00 × 20% = £200.00
  • Gross price = £1,000.00 + £200.00 = £1,200.00

Example 2: Remove VAT from a tax-inclusive price

  • Gross price: £120.00
  • VAT rate: 20%
  • Net price = £120.00 ÷ 1.20 = £100.00
  • VAT amount = £120.00 − £100.00 = £20.00

Example 3: Add GST (Australia)

  • Net price: A$250.00
  • GST rate: 10%
  • GST amount = A$250.00 × 10% = A$25.00
  • Gross price = A$275.00

Example 4: Add Sales Tax (United States)

  • Net price: $89.99
  • Local Sales Tax rate: 8.25% (example only)
  • Tax amount = $89.99 × 8.25% ≈ $7.42
  • Total = $89.99 + $7.42 ≈ $97.41

Frequently asked questions

1. What rate should I use?
Use the rate that applies in the place of supply and for the specific item category. If multiple taxes apply, combine them into a single percentage. Check current local guidance.

2. What is the difference between VAT, GST, and Sales Tax?
They are all consumption taxes on sales. VAT/GST is usually included in business pricing and can often be reclaimed by registered businesses on purchases. US Sales Tax is typically added at checkout and is not generally reclaimable by consumers or businesses.

3. How do I remove VAT from a price that already includes it?
Select “Remove VAT”, enter the gross price and the rate. The calculator divides the gross price by 1 + (rate ÷ 100) to find the net and subtracts to get the tax.

4. Why don’t my rounded line items add exactly to the total?
Rounding rules differ. Some systems round each line; others compute tax on the subtotal and then round. Minor differences of a cent or penny can occur.

5. Can I use this for credit notes or refunds?
Yes, the same math applies. Calculate the net and tax for the amount being credited. Follow local documentation rules for credit notes.

Summary

Calq.’s VAT Calculator makes it easy to add or remove VAT, GST, or Sales Tax and to understand net, tax, and gross amounts. Enter your amount, rate, and calculation type to see clear results you can use for pricing, quotes, invoices, and bookkeeping.

Because tax rules and rates change, treat the outputs as a helpful guide-not legal or tax advice-and confirm local requirements where you operate.

Use the calculator above with your details to get precise figures for your next invoice or pricing decision.