Adding tax and taking it back out
Adding tax is simple multiplication. Removing it is where mistakes happen: you cannot subtract the percentage from a gross figure. To strip 17% tax out of an inclusive price you divide by 1.17, because the tax was charged on the net amount, not on the total. The remove mode here does that for you.
Common rates around the world
- Pakistan general sales tax: 18%
- United Kingdom VAT: 20% standard, 5% reduced
- India GST: 5%, 12%, 18% and 28% slabs
- Australia and New Zealand GST: 10% and 15%
- United States: no national rate, each state and city sets its own
Rates change with budgets, so confirm the current rate with your tax authority before you file anything.
Frequently asked questions
How do I remove VAT from a price?
Divide the gross price by 1 plus the rate as a decimal. For 20% VAT, divide by 1.2. Choosing remove mode above does it automatically.
Is this the same for GST and sales tax?
Yes, the arithmetic is identical. Only the rate and the name change from country to country.
Can I use it for invoicing?
It is fine for checking figures, but always match the rate and rounding rule your tax authority requires on formal invoices.