VAT & sales tax

Add tax on top, or strip it out of a gross price.

Currency

Price excluding VAT

VAT rate

Price including VAT

$1,250.00

VAT at 25.00%

How it works

Switch between adding tax to a net figure and backing it out of a price that already includes it — the mistake that costs freelancers the most.

Gross = Net × (1 + Rate ÷ 100) Net = Gross ÷ (1 + Rate ÷ 100)

Example: 1,000 net at 25% VAT is 1,250 gross. Going the other way, 1,250 gross contains 250 of VAT.

Why can't I just subtract 25% from a gross price?

Because the 25% was added to the smaller net figure. Subtracting 25% from 1,250 gives 937.50, but the correct net is 1,000.

What rate should I use?

Whatever applies where you sell. Common rates include 25% in Sweden, 20% in the UK, and 19% in Germany, with reduced rates for food and books.

Does this work for US sales tax?

Yes — the maths is identical. Enter your combined state and local rate.