Add tax to a net price, or pull the tax back out of a price that already includes it.
VAT (Value Added Tax) and GST (Goods and Services Tax) are consumption taxes added to the price of most goods and services, used by most countries around the world outside the United States. Though the names and specific rules differ by country, they work the same basic way: a percentage is added to a good's price, collected by the seller, and passed on to the government.
This calculator works in either direction, add tax to a price that doesn't include it yet, or extract the tax amount from a price that already does.
| Country / Region | Typical standard rate |
|---|---|
| United Kingdom (VAT) | 20% |
| European Union (VAT) | ~19-25% (varies by country) |
| Australia (GST) | 10% |
| India (GST) | 5%, 12%, 18%, or 28% (varies by item) |
| Canada (GST/HST) | 5% GST, up to 15% combined with provincial tax |
| Pakistan (GST/Sales Tax) | ~17-18% |
These are general reference points only, actual rates vary by country, region, and even by specific product or service category (many countries apply reduced rates or exemptions to essentials like food, books, or medicine). Always confirm the exact current rate for your situation with your local tax authority.
Adding tax: Gross price = Net price × (1 + rate ÷ 100). For example, $100 with 18% GST added becomes $100 × 1.18 = $118, with $18 of that being tax.
Removing tax: Net price = Gross price ÷ (1 + rate ÷ 100). For example, $118 that already includes 18% GST breaks down to $118 ÷ 1.18 = $100 net, with $18 of tax embedded in that price. Note this isn't the same as simply subtracting 18% from $118, since the tax was calculated on the smaller net amount, not the final gross price.
Because the tax percentage was originally calculated on the smaller net price, not the larger final price, directly subtracting the percentage from the gross price overstates the tax amount. Always divide by (1 + rate/100) to remove tax correctly, rather than multiplying the gross price by the rate.
Yes, the math is identical, US sales tax is typically added at checkout rather than included in listed prices, but the same add/remove tax formulas apply regardless of what the tax is called.
Enter the specific rate that applies to your particular product or service category, since these calculators work with a single rate at a time, check your local tax authority for which rate applies to what you're calculating.
They're similar in that both add a percentage to a sale price, but they're structured differently behind the scenes, VAT is collected incrementally at each stage of production and distribution, while sales tax is typically collected only once, at the final point of sale to the consumer. For calculating the tax on a single purchase, the math works the same either way.