Add Sales tax or Value Added Tax (VAT) calculator: calculate tax inclusive purchase, tax included value, formula and explanation

Add sales tax or VAT, calculate tax inclusive value (fee included value)

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

Latest sales taxes or value added taxes (VAT) added to tax free values. Calculated tax inclusive values (charge, fee included) and the net amounts of the added taxes.

Add 75% tax to 80 Dec 11 11:25 UTC (GMT)
Add 9% tax to 140 Dec 11 11:21 UTC (GMT)
Add 19% tax to 1,512 Dec 11 11:21 UTC (GMT)
Add 19% tax to 53.22 Dec 11 11:19 UTC (GMT)
Add 10% tax to 329 Dec 11 11:16 UTC (GMT)
Add 19% tax to 784 Dec 11 11:15 UTC (GMT)
Add 12% tax to 1 Dec 11 11:15 UTC (GMT)
Add 5% tax to 1,450 Dec 11 11:14 UTC (GMT)
Add 5% tax to 200 Dec 11 11:14 UTC (GMT)
Add 31.71% tax to 9,900 Dec 11 11:12 UTC (GMT)
Add 19% tax to 13,155.84 Dec 11 11:09 UTC (GMT)
Add 19% tax to 15 Dec 11 11:05 UTC (GMT)
Add 19% tax to 15 Dec 11 11:05 UTC (GMT)
All sales taxes or VAT added to calculate tax inclusive values.

Tax inclusive value = Tax free value + Tax value (Sales tax or VAT depending on the country)

How to calculate Tax inclusive value (how to add tax to the value without tax)

  • Tax inclusive value = Tax free value + Tax value
  • Tax value = Tax% × Tax free value
  • Tax inclusive value = Tax free value + Tax% × Tax free value = (1 + Tax%) × Tax free value
  • In conclusion:

    Tax inclusive value = (1 + Tax%) × Tax free value ... if we know the Tax free value

    Tax free value = Tax inclusive value ÷ (1 + Tax%) ... if we know the Tax inclusive value

Examples of tax adding calculations:

  • If Tax rate is 19%, (1 + Tax%) = 1 + 19% = 100/100 + 19/100 = 119/100 = 1.19 => Tax included value = 1.19 × Tax free value, and Tax free value = Tax included value ÷ 1.19;
  • If Tax rate is 9%, (1 + Tax%) = 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 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 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

A sales tax is a consumption tax imposed by the 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.

For example, if a person purchases a TV set for $500 and lives in an area where the sales tax is 5%, you can calculate that this person would pay $25 in sales tax. Total bill would be in the end $525.

In another example, 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 fuzzy apples example above, the cider maker would pay a percentage of the difference between 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.

There are standard VAT rates in effect, for example the standard VAT rate could be 19%, and some reduced rates could be 9% and 5% respectively, but they depend on each country.