VAT/GST Calculator
Add or remove VAT or GST and calculate the net position for a return.
About VAT/GST Calculator
Removing tax from a gross figure requires dividing by one plus the rate rather than subtracting the rate, which is the most common error. A 20 per cent rate means the tax is one sixth of the gross. VAT is a tax on the value added, which is why registered businesses remit only the difference between output and input tax rather than the full amount charged.
Formula
VAT/GST
Net = gross ÷ (1 + rate); tax = net × rate; payable = output tax − input tax
- output tax
- Tax charged on sales
- input tax
- Tax paid on purchases, which is reclaimed against output tax
Worked example
With the default values below, VAT/GST Calculator returns Tax Amount of $240.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Amountminimum 0
- 1,200
- VAT or GST rateaccepts 0–40 %
- 20 %
- Amount already includes taxone of Yes, No
- No
- Input tax paid on purchasesminimum 0
- 140
Results
- Tax Amount
- $240.00
- Net Amount Excluding Tax
- $1,200.00
- Gross Amount Including Tax
- $1,440.00
- Net Tax Payable After Input Tax
- $100.00
- Tax as a Share of the Net Amount
- 20.00%
Step by step
- 1Values used
- 2VAT/GST
- 3Tax Amount= 240.00
- 4Net Amount Excluding Tax= 1,200.00
- 5Gross Amount Including Tax= 1,440.00
- 6Net Tax Payable After Input Tax= 100.00
- 7Tax as a Share of the Net Amount= 20.00
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- Tax treatment depends on jurisdiction, registration status, place of supply and the nature of the goods or services. This is a general calculation and not tax advice. Consult a qualified tax adviser for your obligations.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Tax treatment depends on jurisdiction, registration status, place of supply and the nature of the goods or services. This is a general calculation and not tax advice. Consult a qualified tax adviser for your obligations.
Frequently Asked Questions
How is VAT/GST calculated?
Net = gross ÷ (1 + rate); tax = net × rate; payable = output tax − input tax Removing tax from a gross figure requires dividing by one plus the rate rather than subtracting the rate, which is the most common error. A 20 per cent rate means the tax is one sixth of the gross.
Why does VAT/GST matter?
VAT is a tax on the value added, which is why registered businesses remit only the difference between output and input tax rather than the full amount charged.
What values do I need to enter?
This calculator takes 4 inputs: Amount, VAT or GST rate, Amount already includes tax, Input tax paid on purchases. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.
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