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Net Amount-
Tax Amount-
Gross Total-
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About

Value Added Tax (VAT) or Goods and Services Tax (GST) compliance is a daily task for freelancers and businesses operating internationally. A common friction point is extracting the tax component from a "Gross" total (e.g., a receipt that says $120 incl. tax). Standard calculators complicate this.

This tool simplifies the process with two modes: "Add Tax" (Net → Gross) and "Remove Tax" (Gross → Net). It features a comprehensive dropdown of global tax rates, allowing you to quickly switch contexts between UK VAT (20%), German VAT (19%), or Japanese Consumption Tax (10%) without manual lookup.

finance vat tax gst invoicing freelance

Formulas

To extract the original price (Net) from a total price (Gross) that includes tax at rate r (decimal, e.g., 0.20):

Net = Gross1 + r

Reference Data

VariableAdd Tax (Forward)Remove Tax (Reverse)
Net AmountInputGross / (1 + r)
Tax AmountNet × rGross - Net
Gross AmountNet + TaxInput

Frequently Asked Questions

Yes. While the country dropdown pre-fills the Standard Rate, you can manually override the "Tax Rate" field with any percentage applicable to your specific goods.
Mathematically, the calculation is often the same (Percentage of Net). However, VAT is applied at every stage of production, whereas Sales Tax is usually applied only at the point of sale. This tool calculates the values correctly for both systems.