Add tax
Gross price = net price x (1 + tax rate)
Remove tax
Net price = gross price / (1 + tax rate)
Example
With a 20% rate, 100 net becomes 120 gross. A 120 gross price contains 20 tax and 100 net.
Limitations
Rates and rules vary by country and product. Use official local tax sources for real compliance questions.
When the formula is not enough
- Taxability can vary by product, seller, buyer, location and date.
- Rounding and invoice rules may be prescribed by local authorities.
- Use official tax guidance for compliance, not a generic calculator.
FAQ
Why are add-tax and remove-tax formulas different?
Removing tax divides by the tax-inclusive multiplier because the tax is already included in the gross price.
Does this page provide official tax rates?
No. It uses the rate entered by the user.