VAT / GST Calculator

Value-Added Tax (VAT) and Goods and Services Tax (GST) are consumption taxes added to the price of most goods and services. They're charged as a percentage of the price and ultimately paid by the end consumer, even though businesses collect and remit them at each stage of the supply chain. The names differ by country — it's VAT in the UK and across the EU, and GST in Australia, Canada, New Zealand, Singapore and elsewhere — but the mechanics are the same.

There are two everyday calculations. Adding tax starts from a net (tax-exclusive) price and works out the gross (tax-inclusive) price: multiply the net amount by the tax rate to get the tax, then add it on. A £100 net item at 20% VAT becomes £120 gross. Removing tax does the reverse — it starts from a gross price that already includes tax and works backwards to find the net amount and the tax portion. This is where people often slip up: you can't simply subtract 20% from a gross price. To remove 20% VAT from £120 you divide by 1.20, giving a £100 net price and £20 of VAT, not £24.

Rates vary by country and product. The UK standard VAT rate is 20%, with a reduced 5% rate on some goods and a zero rate on essentials like most food and children's clothing. Australia's GST is a flat 10%. Canada's federal GST is 5%, often combined with provincial sales tax (PST) or harmonised into a single HST that varies by province. Because rates differ so widely, this calculator keeps the rate editable rather than fixing it.

Knowing the net, tax and gross split matters for invoicing, expense claims, pricing products, and reclaiming VAT if you're a registered business. For shoppers it simply answers "what's the real pre-tax price?" or "what will this cost at the till?". Always confirm the correct rate for your specific goods and jurisdiction, as exemptions and reduced rates are common.