VAT or sales tax: add it or extract it?

Pick the consumption-tax calculator by direction: net to gross, gross to net, or a discount applied before tax.

VAT and sales tax differ in how they are collected, but the arithmetic question is the same: is the number in front of you net or gross? Once that is settled, the correct tool and direction are unambiguous, and the rounding behaviour is the only remaining detail.

Add tax when you start from a net amount

Both calculators can add tax to a net figure to produce a gross total. Use add mode when a price list excludes tax and you need the amount a customer will actually pay, keeping the rate and currency consistent across the calculation.

Extract tax when you only have the gross total

Extract mode divides the gross amount by one plus the rate, which is not the same as subtracting the rate from the total. Use it to recover the net price and the tax portion from a receipt or an inclusive quote.

Apply discounts before tax, then check the order

A discount usually reduces the net amount before tax is added. Running the discount calculator first and the tax calculator second matches that order; reversing them overstates or understates the tax depending on the rate.

Tools covered in this guide

VAT Calculator
Add VAT to a net amount or strip it from a gross figure, to the cent.
Sales Tax Calculator
Add tax to a net price or extract it from a gross total, to the cent.
Discount Calculator
Work out sale savings, final price, and totals for any discount percent.

Frequently asked questions about consumption tax

Why is extracting tax not simply subtracting the percentage?

The rate was applied to the net amount, so the gross total is 100 percent plus the rate. Dividing by one plus the rate reverses that multiplication correctly.

Are VAT and sales tax calculated the same way?

The percentage arithmetic is the same; the difference is where in the supply chain the tax is collected and how it is reported.

Should I round the tax before or after multiplying?

Keep full precision through the multiplication and round the final currency amount, otherwise repeated rounding can shift the total by a cent.