Calculate value-added tax and goods-services tax for 100+ countries with inclusive/exclusive price conversion.
One price can mean two different things across borders: in most of Europe, shop prices already include VAT, while business invoices often quote amounts before tax, and in the United States displayed prices usually exclude tax entirely. This tool converts between the two: pick the country so its standard rate is applied, enter the amount, say whether it includes tax, and it returns the other figure plus the tax portion. The mistake users make most often is applying the rate to a tax-inclusive total. That overstates the tax: 20% of a 120 gross price computes 24, but the VAT actually embedded in that 120 total is 20.
A concrete input and expected output from the current implementation.
Input
Country: United Kingdom (VAT 20%). Amount: 120.00. The amount includes VAT.
Expected output
Price excluding VAT: 100.00. VAT included: 20.00.
Because the 120 already contains the tax, it equals 120% of the net price, so the net is 120 / 1.20 = 100 and the tax is 120 - 100 = 20. Taking 20% of 120 would wrongly report 24 of tax.
For an exclusive amount, the tool adds tax on top: gross = net x (1 + rate), and tax = net x rate. For an inclusive amount it extracts tax from inside the total: net = gross / (1 + rate), and tax = gross x rate / (1 + rate). The two directions are inverse, so converting a gross price back to net and forward again returns the original figure, apart from rounding.
Selecting a country supplies its standard VAT or GST rate, so most users never type a rate; the value can be edited when the situation calls for a different one. The standard rate is a headline number - reduced rates, zero-rated goods, and exemptions are not reflected - and the preset is only as current as the rate data behind it.
The tax is 200 and the pre-tax price is 1,000: divide 1,200 by 1.20. The 1,200 quote came from adding 20% to 1,000, so removing 20% of 1,200 (240) would be wrong. The rule generalizes: gross divided by one plus the rate as a decimal.
There is no federal VAT or GST in the United States. Sales tax is a state and local levy, usually added on top of displayed prices, with rates varying by state, county, and city, so a single national rate does not exist. Treat it as a different mechanism: VAT is built into the price you pay, while US sales tax is charged at the register.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
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