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Add or remove tax at any rate, with US, UK, EU, CA and AU presets.
Divide by 1 plus the rate. This is the calculation people get wrong most often, and the error is always in the same direction.
At 20% UK VAT, a £120 gross price has a net of £120 ÷ 1.20 = £100 and VAT of £20.
Subtracting 20% instead gives £96, which is wrong by £4. The reason is that the 20% was calculated on the net figure, not the gross one — so as a share of the gross it is 16.67%, not 20%.
The shortcut for 20% VAT is to divide by 6 to get the tax: £120 ÷ 6 = £20. For 5% VAT, divide by 21. For 23% (Ireland), divide by 5.348.
| Country | Standard rate | Reduced rates | Notes |
|---|---|---|---|
| United Kingdom | 20% | 5%, 0% | 0% on most food, children's clothes, books |
| Ireland | 23% | 13.5%, 9%, 0% | 9% on tourism and hospitality |
| Germany | 19% | 7% | 7% on food, books, transport |
| France | 20% | 10%, 5.5%, 2.1% | 5.5% on food and books |
| Netherlands | 21% | 9% | 9% on food, medicine, books |
| Spain | 21% | 10%, 4% | 4% on essentials |
| Italy | 22% | 10%, 5%, 4% | Four-band system |
| Canada | 5% GST | + provincial | HST 13–15% in five provinces |
| Australia | 10% GST | 0% | 0% on basic food and health |
| United States | 0% federal | State + local | 0% to ~11.5% combined |
They are structurally different taxes that happen to end up at a similar place, and confusing them causes real problems for anyone selling across the Atlantic.
VAT is charged at every stage of production, with businesses reclaiming what they paid on inputs. The end consumer bears the whole amount, and prices in the UK and EU are legally required to be displayed VAT-inclusive to consumers.
US sales tax is charged only at the final retail sale, is never reclaimable, and is almost universally displayed exclusive of the price. A $100 item in Chicago costs $110.25 at the register, and nothing on the shelf says so.
There is no federal sales tax in the US. Rates are set by states, counties, cities and special districts, which produces over 13,000 distinct taxing jurisdictions. Five states — Alaska, Delaware, Montana, New Hampshire and Oregon — have no state sales tax at all, though Alaska permits local ones.
Since the 2018 South Dakota v. Wayfair decision, states can require out-of-state sellers to collect once they cross an economic nexus threshold, typically $100,000 in sales or 200 transactions into that state.
Thresholds vary and the direction of travel is downward.
In the UK, registration is mandatory once taxable turnover exceeds £90,000 in any rolling 12-month period. Voluntary registration below that is common for B2B sellers, because it allows reclaiming input VAT.
In the EU, domestic thresholds vary by member state, but cross-border digital sales to consumers have had a €10,000 EU-wide threshold since 2021, above which you charge the customer’s local rate. The One-Stop Shop scheme lets you file that through a single member state rather than registering in 27.
In Canada, the GST/HST small supplier threshold is CAD $30,000 in a rolling four quarters.
In Australia, GST registration is required at AUD $75,000 of turnover.
This calculator computes tax; it does not determine liability. Cross-border rules — reverse charge, place of supply, digital services — are genuinely complex, and the amounts involved usually justify an accountant.
Divide the gross by 1 plus the rate. At 20%, divide by 1.2. Subtracting 20% from the gross gives the wrong answer.
Divide the gross by 6. A £150 gross price contains £25 of VAT.
Functionally yes — different countries use different names for a value-added tax. Canada, Australia, New Zealand, India and Singapore say GST; the UK and EU say VAT.
Combined state and local rates peak around 11.5% in parts of Louisiana, Tennessee and Arkansas. California has the highest state-level rate at 7.25%.
It depends on whether they are a business or a consumer and what you are selling. B2B within the EU generally uses the reverse charge; B2C digital sales use the customer's local rate above the €10,000 threshold. Take advice for anything material.
To consumers, yes — it is a legal requirement. B2B pricing is commonly quoted excluding VAT, which is why the same item can appear at two different prices.
No. Everything is computed locally.