How to Calculate VAT & Sales Tax (UK, US, Canada) | Free Calculator

How to Calculate VAT & Sales Tax (UK, US, Canada) | Free Calculator
Free Tool · No Registration

How to Calculate VAT & Sales Tax (UK, US, Canada)

Whether you charge VAT in the United Kingdom or sales tax / GST / HST in the United States and Canada, the math is simple once you know the rate. Use the free calculator below or follow the formulas.

Free VAT / Sales Tax Calculator

Formulas

Add tax (net → gross):
Gross = Net × (1 + rate ÷ 100)
Tax = Gross − Net

Remove tax (gross → net):
Net = Gross ÷ (1 + rate ÷ 100)
Tax = Gross − Net

Common rates (guide only)

RegionTypical rateNotes
United Kingdom20% standard VATReduced rates (5%, 0%) apply to some goods and services.
United StatesVaries by stateNo federal sales tax. State + local rates often 0–10%+.
CanadaGST 5% + provincialHST in some provinces (e.g. 13–15%). GST-only elsewhere.

Always confirm the current rate for your location and product type. Rates change and exemptions exist.

When freelancers and small businesses need this

  • Creating invoices that show tax correctly
  • Checking that a quoted price is net or gross
  • Reconciling tax payable or receivable for returns

Want a free VAT and sales tax tool built for freelancers?

Open Free VAT / Sales Tax Calculator on Invoice Luxe →

FAQ

How do I remove VAT from a UK price?

Divide the gross price by 1.20 (for 20% VAT). Example: £120 including VAT → £100 net, £20 VAT.

Is US sales tax the same as UK VAT?

No. VAT is a value-added tax usually charged by the seller and reclaimable by VAT-registered businesses. US sales tax is typically charged at the point of sale and rules vary by state.

What about Canada GST and HST?

GST is federal (5%). Some provinces use HST (combined federal + provincial). Others have separate PST/QST. Use the correct combined rate for your province.

This page is for educational purposes only. It is not tax advice. Confirm rates and obligations with HMRC, your state department of revenue, or the Canada Revenue Agency.

Post a Comment

0 Comments