What is the difference between VAT and sales tax?

VAT is collected at every stage of production. Sales tax is only charged at the final point of sale to the consumer.

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VAT & Sales Tax Calculator

Q: How do I remove VAT from a price?

To remove VAT: Net Price = Gross Price divided by (1 + rate/100). For example £120 at 20% VAT = £120 / 1.20 = £100 net.

Add or remove VAT and sales tax from any price in seconds. Supports UK, EU, US, and any custom rate.

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🧾 Calculate Tax

Quick Rate Presets

5% US 8.25% TX 10% AU 20% UK 21% EU 25% Nordic

Price

Currency

VAT / Tax Rate

Mode

💰 Result

Price Including Tax

$120.00

Tax: $20.00 (20%)

🏷️ Original Price$100.00

📊 Tax Rate20%

💸 Tax Amount$20.00

✅ Final Price$120.00

📈 Multiplier× 1.2000

🌍 VAT Reference

🇬🇧 UK Std20%

🇬🇧 UK Red.5%

🇩🇪 Germany19%

🇫🇷 France20%

🇮🇹 Italy22%

🇸🇪 Sweden25%

🇨🇦 Canada GST5%

🇦🇺 Australia10%

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Frequently Asked Questions

How do I add VAT to a price?▾

Select "Add Tax" mode, enter the net price and your VAT rate. The formula is: Price incl. VAT = Net Price × (1 + rate/100). For example, $100 at 20% VAT = $120 total.

How do I remove VAT from a price?▾

Select "Remove Tax" mode, enter the gross (VAT-inclusive) price. Formula: Net Price = Gross ÷ (1 + rate/100). Example: £120 ÷ 1.20 = £100 net price, £20 tax.

What is the UK standard VAT rate?▾

The UK standard VAT rate is 20%. A reduced rate of 5% applies to home energy and some social services. Zero rate (0%) applies to food, books, and children's clothing.

Is VAT the same as sales tax?▾

Both are consumption taxes, but differ structurally. VAT is collected at every production stage and businesses can reclaim it. US sales tax is charged only at the final sale. The calculation method is the same for the end consumer.