How it works
- Add tax: Tax = Net × rate, Gross = Net × (1 + rate)
- Remove tax: Net = Gross ÷ (1 + rate), Tax = Gross − Net
Example: 100 + 20% VAT = 120. From 120 including 20% VAT, the net is 100 and the VAT is 20.
FAQ
Why not just subtract 20% from the gross?
Tax is a percentage of the net price, so removing it means dividing by 1.2, not multiplying by 0.8.
Which rate should I use?
Rates differ by country, state, city and product category. Check your local tax authority.
Is this tax advice?
No. It is a calculation tool only.
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