ledger365

VAT & GST calculator

Invoicing needs the tax split out; pricing needs it added on. This does both, and the reverse calculation is the one people get wrong most often.

How to use the vat & gst calculator

  1. Enter the amount you have.
  2. Set the tax rate.
  3. Tell it whether your amount is before tax or already includes it.

How it works

Adding tax is simple multiplication: net × (1 + rate). Removing it is division: gross ÷ (1 + rate). Subtracting the percentage from a gross figure gives the wrong answer — 17% off 1,170 is 971.10, but the correct net is 1,000.

This works for any single-rate consumption tax, including VAT across Europe, GST in India, Australia, Singapore and Canada, and Pakistan's general sales tax.

Common questions

How do I remove 20% VAT from a total?

Divide by 1.2. A gross of 120 is a net of 100 and 20 of VAT.

Can I use this for reverse GST?

Yes — choose 'after tax' and it performs the reverse calculation for any rate you enter.

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