VAT vs GST Calculator Basics
Published July 16, 2026By Samson PG
VAT and GST are both percentage taxes on value. The add/remove formulas are the same family — names and rates differ by country.
VAT (Value Added Tax) and GST (Goods and Services Tax) both apply a percentage to a taxable base. Day-to-day calculator math — add tax or back out tax from an inclusive price — is the same structure.
Illustrative only — not tax advice. Registration, input credits, and filing rules are jurisdiction-specific.
Shared formulas
Add tax
tax = net × (rate ÷ 100)
gross = net + taxRemove tax
net = gross ÷ (1 + rate ÷ 100)
tax = gross − netExample at 20% VAT: gross €120 → net = 120 ÷ 1.20 = €100.
How they differ in practice
| Topic | Typical distinction |
|---|---|
| Name / branding | VAT in many countries; GST in others (e.g. India, Australia variants) |
| Rate schedules | Local slabs and exemptions |
| Credit mechanism | Input tax credit systems differ in detail |
| Calculator choice | Same % math; pick the tool labeled for your context |
When to use which tool
- Shopping or invoices labeled VAT → TryCalculatingNow VAT Calculator
- Indian GST slabs (5/12/18/28) → TryCalculatingNow GST Calculator
See also GST add and remove.
Privacy
Price inputs remain on your device.
FAQ
Is sales tax the same as VAT?
Related idea (percentage on a sale), different legal systems. U.S. sales tax is often applied at retail without the same invoice-credit chain as VAT.
Why does removing 20% from €120 not equal €96?
Because 20% of the gross is not the VAT amount. Divide by 1.20.
Can rates be 0%?
Yes — zero-rated or exempt supplies exist in many codes.
Do calculators file returns?
No. They only do arithmetic for your scenarios.