VAT / sales tax calculator

Formula

How it works

To add tax multiply by 1 plus the rate. To remove tax from a tax-inclusive price divide by 1 plus the rate — do not simply subtract the rate, because the tax was charged on the smaller net price.

Worked example

The same calculation with the default values:

• Amount 100
• Tax rate 15 %

1. with tax = 100 × (1 + 15 ÷ 100) = 115
2. net (tax excluded) = 100 ÷ (1 + 15 ÷ 100) = 86.956522
3. tax contained = 100 − 86.956522 = 13.043478

Result: If the amount excludes tax: total with tax: 115.00 USD · If the amount excludes tax: tax amount: 15.00 USD · If the amount includes tax: price without tax: 86.96 USD

Common mistakes

• Applying this generic percentage when a country-specific verified rate is what's actually needed - use the dedicated VAT rate lookup calculator for an officially-sourced rate instead of guessing one here.
• Confusing "add tax" and "remove tax" - if a price already includes tax, use remove-tax to find the net amount; applying add-tax to a tax-inclusive price double-counts the tax.
• Forgetting that not all VAT is "recoverable" - a VAT-registered business can often reclaim VAT paid on business purchases, but a consumer or an exempt business cannot, which changes whether the tax amount is a real cost or not.