Tax Calculator
Calculate GST and VAT.
GST, VAT, and Sales Tax: A Global Guide
Whether you are a freelancer issuing an invoice or a traveler trying to figure out a refund, tax calculations can be confusing.UnitMaster Tax Calculator handles the two most common scenarios: "Adding Tax" and "Removing Tax".
The Difference Between VAT and GST
Functionally, they are very similar (consumption taxes), but they generally apply to different regions:
- GST (Goods and Services Tax): Common in Canada, Australia, New Zealand, and India. It is a single tax on the supply of goods and services.
- VAT (Value Added Tax): Common in the UK and European Union. It is charged at each stage of production.
- Sales Tax: Common in the USA. It is usually only charged at the final point of sale to the consumer.
Inclusive vs. Exclusive Tax
Exclusive: The price is $100 + 10% Tax = Bill is $110. (Common in US/Canada).
Inclusive: The bill is $110. You need to "back-calculate" to find the tax.
Formula: Tax Amount = Total Price - (Total Price / (1 + Tax Rate)).
Input Tax Credit (ITC)
For business owners, GST/VAT is not a cost; it is a flow-through. You collect tax from customers and pay tax to suppliers. You only pay the government the difference. Keeping accurate calculations is essential to avoid overpaying your liability.