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

Add VAT to the Net Amount (Without Tax), Calculate Gross Amount

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

Latest operations where VAT was added to the Net Amounts (Without Tax).

Add 18% tax to 11,661.99 Nov 12 12:50 UTC (GMT)
Add 31% tax to 149,850 Nov 12 12:50 UTC (GMT)
Add 17% tax to 22,000 Nov 12 12:50 UTC (GMT)
Add 12% tax to 9,241.97 Nov 12 12:49 UTC (GMT)
Add 19% tax to 124.416 Nov 12 12:49 UTC (GMT)
Add 6% tax to 85.14 Nov 12 12:49 UTC (GMT)
Add 20% tax to 0.232 Nov 12 12:49 UTC (GMT)
Add 19% tax to 5.02 Nov 12 12:49 UTC (GMT)
Add 19% tax to 9,240 Nov 12 12:49 UTC (GMT)
Add 20% tax to 283.33 Nov 12 12:48 UTC (GMT)
Add 19% tax to 924.5 Nov 12 12:48 UTC (GMT)
Add 4% tax to 12.3 Nov 12 12:48 UTC (GMT)
Add 19% tax to 1,010 Nov 12 12:48 UTC (GMT)
All the operations where VAT was added to the Net Amounts (Without Tax).

Add the Value Added Tax (VAT) to the Net Amount (Without Tax).

Calculate the Gross Amount (With Tax Included).

  • Gross Amount = Net Amount + Tax Amount
  • Tax Amount = Tax% × Net Amount
  • Gross Amount = Net Amount + Tax% × Net Amount = (1 + Tax%) × Net Amount
  • In conclusion:

    Gross Amount = (1 + Tax%) × Net Amount ... if we know the Net Amount

    Net Amount = Gross Amount ÷ (1 + Tax%) ... if we know the Gross Amount

Examples of calculations:

  • If Tax rate is 20%, (1 + Tax%) = 1 + 20% = 100/100 + 20/100 = 120/100 = 1.2 => Tax included value = 1.2 × Net Amount, and Net Amount = Tax included value ÷ 1.2;
  • If Tax rate is 9%, (1 + Tax%) = 1 + 9% = 100/100 + 9/100 = 109/100 = 1.09 => Tax included value = 1.09 × Net Amount, and Net Amount = 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 × Net Amount, and Net Amount = Tax included value ÷ 1.05;

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. A 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 20%, and some reduced rates could be 9% and 5% respectively, but they depend on each country.