How to use
- Choose Add tax if your price excludes tax, or Remove tax if it already includes it.
- Enter the amount and pick a tax rate, or choose Other to type any rate.
- Read the net price, the tax and the gross price.
How to remove VAT correctly
A common mistake is to take 20% off a VAT-inclusive price. That gives the wrong answer, because the tax was 20% of the net price. Divide by 1.2 instead: £120 ÷ 1.2 = £100 net, so the VAT is £20, not £24.
Formulas
- Gross = net × (1 + rate ÷ 100)
- Net = gross ÷ (1 + rate ÷ 100)
- Tax = gross − net
Frequently asked questions
What is the UK VAT rate?
The standard rate is 20%. A reduced rate of 5% and a zero rate apply to some goods and services.
Can I use this for US sales tax?
Yes. Choose Other and enter your combined state and local rate, such as 8.875% for New York City.
Why does rounding matter?
Tax is often a fraction of a cent. Most invoices round to the nearest cent, but some systems always round down. Pick the method your invoices use.