VAT Calculator

Because the VAT was added to the net, so it's a percentage of the smaller number: a £120 gross at 20% contains £20 of VAT (£100 × 20%), but subtracting 20% of £120 takes off £24 — overstating the VAT by taxing the tax. The correct extraction divides by 1.20. On a VAT return, the subtract error inflates every reclaim, which is exactly the kind of thing that draws attention.

The presets are standard rates, which cover most goods and services — but nearly every country runs reduced rates for specific categories (food, books, children's clothing, energy) and zero-rates others, so the applicable rate depends on what's being sold and where. For invoicing, the rate comes from your tax authority's category list, not from a calculator; this tool then does the arithmetic on whatever rate applies.

Yes — Australia, New Zealand, Canada, Singapore, and India call it GST, but it's the same value-added mechanism: a percentage on the net, included in displayed prices (in most of those countries), extracted by dividing by 1 + rate. The Australia 10% preset works identically to any VAT rate; type any other GST rate directly.

Mechanically similar, culturally opposite: VAT/GST countries display prices with tax included, so the common task is extracting it; the US displays prices before tax and adds it at the register, so the common task is adding it — with rates varying by state, county, and city rather than nationally. The sales tax calculator handles the US pattern.