Tax adding calculator: add tax, calculate tax included value, plus formula and explanation

Add tax, calculate tax included value (value with charge)

Latest values with added tax (tax included values)

Tax included value = Tax free value + Tax value (called VAT in some countries)

How to calculate Tax included value (add tax to the value without tax)

  • Tax included value = Tax free value + Tax value
  • Tax value = Tax% * Tax free value
  • Tax included value = Tax free value + Tax% * Tax free value = (1 + Tax%) * Tax free value
  • In conclusion:

    Tax included value = (1 + Tax%) * Tax free value ... if we know the Tax free value

    Tax free value = Tax included value / (1 + Tax%) ... if we know the Tax included value

Examples of tax adding calculations:

  • If Tax rate is 20%, (1 + Tax%) = 1 + 20% = 100/100 + 20/100 = 120/100 = 1.2 => Tax included value = 1.2 * Tax free value, and Tax free value = Tax included value / 1.2
  • If Tax rate is 5%, (1 + Tax%) = 1 + 5% = 100/100 + 5/100 = 105/100 = 1.05 => Tax included value = 1.05 * Tax free value, and Tax free value = Tax included value / 1.05
  • If TAX rate could ever be 120%, (1 + Tax%) = 1 + 120% = 100/100 + 120/100 = 220/100 = 2.2 => Tax included value = 2.2 * Tax free value, and Tax free value = Tax included value / 2.2

Need to add tax to other values? Click here

VAT (Value Added Tax)

VAT is a tax borne by the final consumer of the good or service.

VAT is a tax charged of each economic agent involved in the business cycle of manufacturing of a product or providing a service within the scope of taxation. VAT, charged by the operators, is transferred to the state budget.

VAT is universal, applying to all goods deriving from current operating activity and also from financial activity of using the available capital.

VAT is a tax neutral and unique, applying to all economic activities, irrespective of the extent of the economic circuit. VAT is calculated for each stage in the production and marketing of intervening economic asset.

There are standard VAT rates in effect, for example the standard VAT rate could be 20%, and some reduced rates could be 9% and 5% respectively.