Add tax to a price or take it out of a tax-inclusive price, and see net, tax and gross.
%
Enter the values to see the result here.
Formula
Adding tax at rate t (percent) to a net price N:
VAT=N⋅100t,G=N+VAT=N(1+100t)
Removing tax from a gross price G:
N=1+t/100G,VAT=G−N
Worked example
A tax-inclusive receipt shows 575 at 15% VAT.
N=575/1.15=500.
VAT = 575−500=75.
Check by adding tax back: 500×1.15=575. The naive shortcut 575×0.15=86.25 overstates the tax by 11.25.
Common mistakes
Taking 15% of the total to find the tax inside it. The tax is 13.04% of the gross price at a 15% rate (15/115).
Applying tax twice, once on the shelf price and again at checkout.
Using the wrong rate for exempt or zero-rated items.
Calculating discounts and tax in the wrong order, which changes the final amount when the discount is a coupon.
Frequently asked questions
What VAT rates apply in the Gulf and Egypt?
Saudi Arabia 15% (raised from 5% in July 2020), the UAE 5%, Bahrain 10%, Oman 5%, Egypt 14%. Rates change, so confirm with your tax authority. Qatar and Kuwait had no general VAT at the time of writing.
Why can't I just subtract 15% from a tax-inclusive price?
Because the 15% was charged on the net price, not on the total. 15% of 230 is 34.50, but the tax inside 230 is 30.00. Divide by 1.15 instead.
What does zero-rated or exempt mean?
Zero-rated goods charge 0% but let the seller recover tax on costs. Exempt goods charge no tax and the seller cannot recover it. Both give the same shelf price here; enter 0 as the rate.
Which rounding should I use on invoices?
Most authorities round tax per invoice or per line to the smallest currency unit. This tool shows two decimals, so check the rule that applies to your invoice.