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)
| Region | Typical rate | Notes |
|---|---|---|
| United Kingdom | 20% standard VAT | Reduced rates (5%, 0%) apply to some goods and services. |
| United States | Varies by state | No federal sales tax. State + local rates often 0–10%+. |
| Canada | GST 5% + provincial | HST 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?
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.
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