Sales tax or Value Added Tax (VAT) extractor calculator: extract the tax from a tax inclusive purchase, calculate tax free value, formula and explanation

Extract sales tax or VAT, calculate value without charge (tax free)

Tax free value = Tax inclusive value ÷ (1 + Tax%)

Latest sales taxes or value added taxes (VAT) extracted from the tax inclusive values. Calculated values without charge (tax free) and the net amount of the extracted taxes.

Extract 9% tax from 528 Aug 21 02:06 UTC (GMT)
Extract 20% tax from 405 Aug 21 01:53 UTC (GMT)
Extract 19% tax from 73 Aug 21 01:50 UTC (GMT)
Extract 20% tax from 68.26 Aug 21 01:50 UTC (GMT)
Extract 20% tax from 4.57 Aug 21 01:50 UTC (GMT)
Extract 20% tax from 3,664 Aug 21 01:50 UTC (GMT)
Extract 19% tax from 3,598.99 Aug 21 01:49 UTC (GMT)
Extract 14.5% tax from 350 Aug 21 01:49 UTC (GMT)
Extract 19% tax from 31,000 Aug 21 01:49 UTC (GMT)
Extract 9% tax from 240 Aug 21 01:49 UTC (GMT)
Extract 19% tax from 1,550 Aug 21 01:49 UTC (GMT)
Extract 20% tax from 11,000 Aug 21 01:49 UTC (GMT)
Extract 20% tax from 10.271 Aug 21 01:49 UTC (GMT)
All sales taxes or VAT extracted from the tax inclusive values

Extract Sales tax or Value added tax (VAT) from tax inclusive values.

How to calculate the value without charge (tax free value, value with no fee)? How to extract sales tax or VAT from a tax inclusive value?

  • 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 calculations with values with or without tax:

  • If tax rate was 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 was 9%, (1 + TVA%) = 1 + 9% = 100/100 + 9/100 = 109/100 = 1.09 => Tax included value = 1.09 × Tax free value, and Tax free value = Tax included value ÷ 1.09;
  • If tax rate was 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 was 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.

Sales tax

Note: The U.S. is one of the few developed countries where conventional sales taxes are still used.

A sales tax is a consumption tax imposed by the government (in U.S. not the federal government) on the sale of goods and services. The sales tax is paid by the consumer to the retailer, as a percentage of the retail cost, who transfers the payment to the state.

If a person pays a bill of $525 to purchase a TV set and lives in an area where the sales tax is 5%, you can calculate that the price of the TV set was $500.

Let's say that a farmer sells apples to a company that produces cider. To avoid paying the sales tax, the cider maker must obtain a resale certificate from the government saying that it is not the end user. The cider maker then sells its product on to a retail store, which will charge the customer sales tax along with the price of cider.

VAT (Value Added Tax)

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.

Value-added tax (VAT) is charged as a percentage of the value added at every level of production of a good. In the example above, the cider maker would pay a percentage of the difference between of what they charge for cider and what they pay for apples. Put differently; this is a tax on company's gross margins, rather than just the end user, as in the sales tax example.

There are standard VAT rates in effect, for example the standard VAT rate could be 17%, and some reduced rates could be 10% and 5% respectively, but they depend on each country.