Sales tax and VAT calculator: add or remove the tax

1. Choose what you want to do: Add tax if you have the price before tax, or Remove tax if you have a total that already includes it.
2. Enter the tax rate as a percentage. Use one of the shortcuts for Mexico, Peru, Chile, Ecuador or Colombia, or type your own (for example 8.875).
3. Pick the currency and enter the amount.

You get the price before tax, the tax and the total, rounded to the cent, and the total written in words so you can carry it to a quote or an invoice. Copy takes the three values with you.

To add the tax:

• Tax = price × rate
• Total = price + tax

To remove the tax from a total that already includes it you do not subtract the rate from the total: you divide by 1 plus the rate.

• Price = total ÷ (1 + rate)
• Tax = total − price

With a rate of 8.875 %:

The most common mistake is to take the rate of a total that already includes the tax: 8.875 % of $100.00 would be $8.88, when the tax included in $100.00 is $8.15.

• There is no federal sales tax in the United States. Sales tax is set by states, and counties and cities can add their own, so the rate depends on where the sale takes place.
• A few states (Delaware, Montana, New Hampshire and Oregon) have no statewide sales tax, and Alaska has none at the state level but allows local taxes.
• Some goods and services are taxed at a lower rate or not at all (groceries, medicine and many services depend on the state), and a buyer with a valid resale or exemption certificate may not owe the tax.
• If you sell across state lines, the rules on where you must collect tax (nexus and the place of sale) change from state to state. Check with your state's department of revenue or a tax professional.

This calculator does the arithmetic only; it does not look up the rate for an address.

The countries where the app issues documents use a value-added tax (VAT) charged on each sale. The standard rates at the time of writing are:

Each country also has reduced rates, a 0 % rate for some goods and exports, and exempt or excluded items, and the rules change from time to time. Check the current rule with the tax authority before you issue an invoice.

• What goes in the taxable amount: usually the full price of the sale, including shipping or installation charged to the customer, but the rules differ by country and state.
• Discounts: apply the tax to the price after the discount that appears on the invoice.
• Rounding: compute the tax per line or on the invoice total consistently; small differences of a cent are normal.
• Documents: the documents you create with the app are not electronic invoices. If your country requires one (for example the CFDI in Mexico), issue it with authorized software.