VAT Calculator (Add or Remove Tax)
Perform gross-up (add VAT) and reverse (remove VAT) calculations instantly for any tax rate.
Price & Tax Rate
Enter the tax rate as a percentage (e.g., 18 for 18%).
Calculation Type
Please ensure the price and rate are valid, non-negative numbers.
VAT Amount Calculated
—
₹
Final Gross/Net Price
—
₹ (Gross Price)
VAT vs. GST: Calculating Consumption Tax
The **VAT Calculator** applies to any consumption tax system, including India’s **GST (Goods and Services Tax)**. It helps businesses quickly determine pricing by providing both the **tax-exclusive (Net)** and **tax-inclusive (Gross)** price points.
Calculation Methods
The method used depends on whether your starting price includes the tax or not:
- **Add VAT (Gross-Up):** Used when the entered price is the **Net Price**. $$\text{VAT Amount} = \text{Price} \cdot \frac{\text{Rate}}{100}$$ $$\text{Gross Price} = \text{Net Price} + \text{VAT Amount}$$
- **Remove VAT (Reverse):** Used when the entered price is the **Gross Price**. $$\text{VAT Amount} = \text{Gross Price} – \frac{\text{Gross Price}}{1 + \text{Rate} / 100}$$ $$\text{Net Price} = \text{Gross Price} – \text{VAT Amount}$$
Frequently Asked Questions (FAQ)
What is the “Reverse VAT” calculation?
The Reverse VAT calculation is crucial when a price is advertised as “tax inclusive.” It helps the seller determine exactly how much of that total revenue is the tax amount that must be remitted to the government.