Invoicing
VAT / Sales Tax Calculator
Add VAT to a net price, or work backwards from a tax-inclusive amount to see the net price and the tax portion.
Gross amount
$120.00
- Net amount
- $100.00
- VAT / tax
- $20.00
Rate presets are common headline rates — always confirm the exact rate for your product/service category and country before invoicing.
How this calculation works
Adding VAT
Gross = net × (1 + rate). The tax amount is net × rate.
Removing VAT
Net = gross ÷ (1 + rate). This is the calculation most people get wrong by simply subtracting the percentage from the gross amount instead of dividing.
Frequently asked questions
What's the difference between 'add' and 'remove' mode?+
Use 'Add VAT' when you have a net (pre-tax) price and want to know the final amount to charge including tax. Use 'Remove VAT' when you have a tax-inclusive price (e.g. a receipt total) and want to find out how much of it was the base price versus the tax.
Are the rate presets always accurate?+
They're common headline rates as a starting point, not a guarantee — VAT/sales tax rates can vary by product or service category, and by state or region for sales tax in some countries. Always confirm the exact applicable rate before issuing an invoice.
Building a full invoice? The Invoice Calculator applies tax across multiple line items at once.