VAT (or GST) Calculator (Generic)

LAST UPDATE: September 25th, 2020

VAT (or GST) Calculator (Add Sales Tax)

Reverse VAT (or GST) Calculator (Subtract Sales Tax)

Definition – What are VAT and GST?

The VAT, or Value-Added Tax, is a value-added tax on purchases. GST is another name for a VAT system.

As a value-added tax, only the final consumer pays the VAT – purchases by business at other stages of production do not pay VAT (they are charged VAT, however, those charges act as a credit against the VAT they charge).

Formula – How to calculate VAT (or GST)

VAT is calculated by multiplying the VAT rate by the total pre-tax cost. The cost of VAT is then added to the purchase.

Example: $75 of goods x 20% VAT = $15 VAT

$75 of goods + $15 VAT = $90 total

Formula – How to calculate reverse VAT (or GST)

To find the VAT from a total, divide the total amount by the VAT rate divided by 100 and plus 1.

Example: $70 total (with VAT) at 20% VAT rate

(20% / 100) + 1 = 0.20 + 1 = 1.20

$70 / 1.20 = $58.33 cost before VAT

VAT & GST refunds (tourism & business)

Some countries allow for refunds for travelers who are not resident in the country.

In most countries with VAT, businesses are eligible to reclaim their costs that include VAT.