About

Value Added Tax (VAT) or Goods and Services Tax (GST) calculations are a daily necessity for freelancers, accountants, and businesses. However, manual calculation often leads to rounding errors or confusion between Gross and Net amounts. This tool is "Accounting Ready," allowing for bidirectional calculation: adding tax to a Net amount or extracting tax from a Gross amount.

Designed with forward-planning in mind, the "2026" architecture anticipates fiscal policy shifts. It includes a pre-loaded database of standard and reduced rates for major global economies, while the "Custom Rate" engine allows users to model hypothetical tax hikes or cuts for future budget forecasting.

Formulas

Bidirectional logic ensures precision for both adding and removing tax.

Add VAT: Gross = Net × (1 + rate100)

Remove VAT: Net = Gross1 + (rate/100)

Reference Data

Country	Standard Rate	Reduced Rate (Common)	Currency
United Kingdom	20%	5%	£
Germany	19%	7%	€
Australia (GST)	10%	N/A	$
Canada (GST/HST)	5% − 15%	Varies	$
Sweden	25%	12%	kr

Frequently Asked Questions

Net is the price before tax. Gross is the final price paid by the consumer, including tax. B2B transactions often quote Net, while B2C quotes Gross.

Select the "Include VAT (Reverse)" option in the tool. Enter the total amount you paid (Gross), and the tool will extract how much of that was tax and what the original price was.