QKitBoxSales tax & VAT calculator
Add tax on top of a net price, or work backwards from a tax-inclusive price to see the net amount and the tax inside it.
Add tax (net → gross)
| Gross (tax added) | – |
|---|---|
| Tax amount | – |
Remove tax (gross → net, reverse VAT)
| Net price | – |
|---|---|
| Tax inside | – |
Dividing by (1 + rate) is the correct reverse — subtracting the rate % from the total undercounts the net.
Notes
- Marketplaces like Etsy and eBay usually collect and remit sales tax on the buyer's side — your payout is typically net of that. Check your ledger before assuming you owe it again.
- Rates differ by state, country and product category. Enter the rate that applies to you.
How to use — step by step
Add tax on top of a net price, or work backwards from a tax-inclusive price to see the net amount and the tax inside it.
- To add tax: enter the net price and the rate — read the gross price and the tax amount instantly.
- To remove tax: enter a price that already includes tax, and the rate it includes. Read the net price and the embedded tax.
- Use the reverse direction when a platform statement shows a tax-inclusive fee, or when selling into markets where displayed prices must include VAT.
- Verify rates against the tax authority or platform documentation for the specific state or country — rates differ by jurisdiction and product category.
How it works
Adding tax is multiplication: gross = net × (1 + rate). Removing tax is the reverse — division: net = gross ÷ (1 + rate). The intuitive shortcut of subtracting the rate from the total (108.25 − 8.25%) is wrong, because the tax was computed on the smaller net figure; subtracting a percentage of the total undercounts the net and overcounts the tax. The tool uses the division method, which is the one bookkeeping and VAT rules require.
Worked example: a 108.25 total at 8.25% divides by 1.0825 to a 100.00 net, leaving 8.25 of tax. The difference from the subtraction shortcut grows with the rate — at 25% VAT it's already meaningful on invoices.
On marketplaces, sales tax on the buyer's side is typically collected and remitted by the platform; your payout is generally net of it. This tool is for your own pricing and bookkeeping math — not tax filing advice.
On invoices and receipts, the display convention is to show net, rate, and tax as separate lines summing to the gross — exactly the two outputs this tool gives you. Rounding convention matters at the line level: compute tax per line and sum, or compute on the invoice total — pick one method and keep it consistent, or your books will disagree with your invoices by cents that accountants must reconcile by hand.
Frequently asked questions
Which rate do I enter for the US?
Combined state + local rate for the destination jurisdiction. Rates vary widely by state, county and city — use your filing agency's published rate.
My platform already remits sales tax. Do I use this?
For your own books: yes, to split a gross figure into net and tax. It doesn't change what you owe — the marketplace handles the buyer-side remittance.
Does it support compound or tiered taxes?
No — one rate at a time. For compounded jurisdictions, compute the effective combined rate first and enter that.
Is the reverse calculation what VAT invoices use?
Yes — dividing by (1 + rate) is the standard VAT-back calculation used on tax-inclusive invoices.
Is shipping taxable?
Depends entirely on jurisdiction — many US states tax shipping when the sale is taxable, some don't; most VAT systems follow the item. Check your rule and treat shipping as part of the base if it is.
Do discounts apply before or after tax?
Almost universally before: tax applies to the price actually paid. Compute the discounted price first, then the tax on it.