VAT / Sales Tax Calculator
Quickly add or remove sales tax from a price.
Results will be displayed here.
Navigating Sales Tax and VAT for E-commerce
Sales tax (in the US) and Value Added Tax (VAT, in the EU/UK and other countries) are consumer taxes that businesses are often required to collect and remit to the government. The rules can be complex and depend on where you and your customers are located (nexus).
Adding Tax: Use this function when you have a pre-tax price and need to find the total cost for the customer. Formula: `Price * (1 + Tax Rate)`.
Removing Tax: Use this when you have a total price (including tax) and need to find the original price and tax amount for your records. Formula: `Price / (1 + Tax Rate)`.
While Shopify and other platforms automate tax collection, this tool is useful for quick calculations and bookkeeping.