Tax

Sales Tax / VAT Calculator

Add or remove tax (Sales Tax/GST/VAT) from gross invoice amounts for 5 major global jurisdictions.

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Calculation Methodology & Formulas

The formula depends on the selected tax mode:

1. Add Tax Mode:
Tax Amount = Base Amount × (Tax Rate / 100)
Final Amount = Base Amount + Tax Amount
2. Remove Tax Mode:
Base Amount = Final Amount / (1 + Tax Rate / 100)
Tax Amount = Final Amount - Base Amount

Real-World Compounding Projections

Extracting 20% VAT in the UK

If you purchase a product for £240 (inclusive of 20% UK VAT), the extracted base value of the product is £200, and the VAT paid is £40.

Frequently Asked Questions (FAQ)