Sales Tax & VAT Calculator

How to use the sales tax & vat calculator

1. Fill in the fields — they start with a worked example.
2. Read the answer, and the arithmetic shown beneath it.
3. Copy the results, or adjust the inputs to compare scenarios.

About this tool

Removing tax is where the arithmetic catches people out. To take 20% VAT out of a gross price you divide by 1.2 — you do not subtract 20%. Subtracting gives 80 from 100, when the correct net is 83.33, because the 20% was charged on the smaller number.

Both directions are offered, with the working shown. VAT and sales tax differ in how they are administered, but the arithmetic on a single price is identical.

Common uses

• Adding VAT to a quote.
• Finding the net figure in a gross invoice total.
• Checking the tax line on a receipt.

Frequently asked questions

How do I remove 20% VAT from a price?

Divide by 1.2. Subtracting 20% gives the wrong answer, because the tax was calculated on the net price, not the gross.

Does this handle compound or state-plus-city tax?

Combine the rates into one figure first. Where taxes compound rather than add, apply them one after the other.