Free tool

Sales tax and VAT calculator

Tax-inclusive or exclusive, single line or multi-line. Common rate presets for US states, UK VAT, and EU member states. Reverse-charge VAT one click away.

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A sales tax or VAT calculator helps you split a transaction into its three components: the net amount (what you keep), the tax amount (what you collect for the government), and the gross amount (what the customer pays). The two common confusions are: tax-inclusive vs tax-exclusive (whether tax is on top of or already inside the amount), and reverse-charge VAT (where the buyer accounts for VAT instead of you, common in EU B2B). This tool handles both.

Mode Preset Tax rate

Line items

Subtotal (net) $0.00

Tax (20%) $0.00

Total (gross) $0.00

What this catches that mental math misses

Sales tax and VAT look simple on a single line. They get tricky fast.

Inclusive vs exclusive is half the bugs

$100 plus 20% tax is $120. $100 inclusive of 20% tax is $83.33 net plus $16.67 tax. Quoting one and meaning the other is the most common invoicing mistake.

US sales tax is rarely just the state rate

Most US sales tax invoices include city, county, and special-district add-ons. Use the state base here as a floor, then check your jurisdiction's actual combined rate.

Reverse-charge VAT looks like a mistake

On EU cross-border B2B invoices, you charge no VAT and write 'Reverse charge' on the invoice. The buyer accounts for VAT in their country. New senders frequently invoice with 0% VAT and forget the wording, which causes the buyer's accountant to bounce the invoice.

Multi-line invoices need per-line totals

A flat 20% on the subtotal works for single-rate invoices. Mixed rates (some lines zero-rated, some standard) need per-line tax. The calculator below supports both.

Use the totals downstream

Build the full quote

Itemize, add contingency, add tax, send as a real link.

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Send the invoice

Multi-currency, multi-line, with tax fields built in.

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Convert to your home currency

If the invoice is foreign-currency, get the issue-date rate.

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Sales tax and VAT FAQ

When do I need to charge sales tax in the US?

When you have nexus in the buyer's state. Nexus is established by physical presence (office, employees, inventory) or by exceeding economic thresholds (typically $100k in sales or 200 transactions per year per state, post-Wayfair). For service-based businesses, many states still do not tax services.

When do I charge VAT in the EU or UK?

If you are VAT-registered, you charge VAT on domestic sales at your country's rate. For EU B2B cross-border, use the reverse-charge mechanism (zero VAT, note 'reverse charge' on the invoice). For B2C cross-border within the EU, use OSS (One Stop Shop) and charge the destination country's rate.

What is reverse-charge VAT?

A mechanism where the buyer accounts for VAT instead of the seller. Used for EU cross-border B2B services and goods. The seller invoices with no VAT and writes 'Reverse charge' (or the equivalent) on the invoice. The buyer self-assesses and reclaims VAT in their own filing.

Should I display tax-inclusive or tax-exclusive prices?

Depends on the audience. B2B in the US: exclusive (price plus tax). B2C in the EU and UK: inclusive (price including VAT, often legally required to display). When in doubt, show both.

Does this calculator account for tax holidays or zero-rated items?

Not directly. For zero-rated lines, set their tax rate to 0% in a multi-rate calculator or just enter them at 0 here. For tax holidays (e.g. school supplies in some US states), confirm the dates and apply the holiday rate.

What if my invoice has multiple tax rates?

Add multiple lines and set the rate per line. The calculator above currently uses a single rate for all lines; for true mixed-rate invoices, send the invoice through JupiterInvoice's product, which supports per-line tax.