VAT / Sales Tax Calculator

How the VAT Calculator Works

The VAT / Sales Tax Calculator helps you compute prices with or without Value-Added Tax (VAT), Goods and Services Tax (GST), or any general sales tax. Whether you are preparing an invoice, checking a receipt, or planning a purchase, this tool handles both directions: adding tax to a base price and extracting tax from a tax-inclusive gross price.

Two Calculation Modes

Add VAT to price (exclusive mode)

You know the pre-tax price and want to find the total. The formulas are:

• VAT Amount = Base Price × (VAT Rate ÷ 100)
• Total Price = Base Price + VAT Amount

Example: A service costs £200 ex-VAT at the UK standard rate of 20%:

• VAT Amount = £200 × 0.20 = £40
• Total Price = £200 + £40 = £240

Extract VAT from price (inclusive mode)

You have a VAT-inclusive price and want to know the pre-tax base and the tax amount:

• Base Price = Gross Price ÷ (1 + VAT Rate ÷ 100)
• VAT Amount = Gross Price − Base Price

Example: A receipt shows £240 including 20% VAT:

• Base Price = £240 ÷ 1.20 = £200
• VAT Amount = £240 − £200 = £40

Effective Rate

The effective rate field confirms the VAT as a percentage of the base price. In standard scenarios it equals the stated VAT rate. It is useful when checking that an inclusive-mode calculation returned the correct proportion.

Common VAT Rates Around the World

Business Use: Invoicing

When issuing an invoice, you must clearly show:

1. The pre-tax amount (base price)
2. The applicable VAT rate
3. The VAT amount
4. The total inclusive amount

This calculator gives you all four values instantly.

Consumer Use: Checking Receipts

Retail receipts in many countries show a line-item VAT breakdown. Use inclusive mode to verify the figures:

• Enter the total you paid
• Enter the tax rate from the receipt
• Confirm the extracted base price and tax match the printed values

Formula Summary