VAT / Sales Tax Calculator

What VAT is

Value Added Tax — called sales tax, GST or IVA depending on where you live — is a percentage added to the price of most goods and services and collected on the government's behalf by the seller. Consumer prices in Europe, the Gulf and much of Asia are usually advertised with the tax already included, while prices in the United States are typically quoted before it. That difference is exactly why a calculator that works in both directions is useful.

Adding and removing the tax

To add tax to a net figure, multiply by (1 + rate ÷ 100). To strip tax out of a gross figure, divide by the same amount — never subtract the percentage. At 20%, a net price of 100 becomes 120; but removing 20% tax from a gross 120 gives 120 ÷ 1.2 = 100, not 96. That single mistake is the most common error in invoicing.

How to use this calculator

Enter the amount and the tax rate, then choose the mode: "Add VAT" if your figure excludes tax, or "Remove VAT" if it already includes it. The result shows the net amount, the tax itself and the gross total as three separate lines, which is the layout most invoices and expense claims ask for.

Rates and reduced categories

Standard rates commonly sit between 5% and 27%, and most countries apply reduced or zero rates to essentials such as food, books, medicine and children's clothing. Because the rate depends on both the country and the product category, enter the rate that applies to your specific transaction rather than assuming the headline national figure.