Sales Tax & VAT Calculator
Calculate sales tax or VAT (Value Added Tax) additions or extract tax from gross pricing.
Tax Parameters
$100.00
20.00%
Calculation Direction
Remove Tax (Extract Net from Gross)
Tax Rate
20.0%
Tax Rate
Base Price (Net Amount)
$100.00
Tax Amount (VAT)
$20.00
Tax Rate Applied
20%
Total Price (Gross Amount)
$120.00
Sales Tax and VAT Basics
Sales Tax vs. VAT
Sales Tax is typically used in the United States and is added at the point of sale. VAT (Value Added Tax) is used in Europe, the UK, and other regions, and is built directly into the consumer's displayed retail price.
Adding Tax
To add tax to a net price, multiply the net price by 1 + the tax rate: Gross = Net * (1 + Tax Rate / 100). For example, $100 with a 15% rate becomes $115.
Removing / Extracting Tax
To extract net price from a gross price, divide the gross price by 1 + the tax rate: Net = Gross / (1 + Tax Rate / 100). For example, to remove a 20% VAT rate from a $120 gross price, divide $120 by 1.20, which equals $100.