Free calculator
Free VAT and GST calculator
Two jobs in one tool: take a tax-inclusive price and split out the tax portion, or take a net price and add the tax on top. Works with any rate, including Nepal's 13 percent VAT.
Split or add VAT and GST
= Rs. 10k
- Net of tax
- Rs. 8,849.56
- Tax at 13%
- Rs. 1,150.44
- Gross with tax
- Rs. 10,000.00
How the formula works
Inclusive: net = price divided by (1 + rate), so a Rs. 11,300 bill at 13 percent contains Rs. 1,300 of tax. Exclusive: tax = price times rate, added on top. The two directions answer different questions: what you owe to the authority versus what you must charge customers.
Worked example
An invoice totals Rs. 11,300 including 13 percent VAT. The net sale is Rs. 10,000 and Rs. 1,300 is output tax you will declare. If instead you quote Rs. 10,000 excluding tax, the customer pays Rs. 11,300 and your books show the same split.
Common mistakes
- Booking the full inclusive amount as revenue; only the net part is yours.
- Mixing up output tax collected and input tax paid when filing.
- Applying the wrong rate across product categories that have exemptions.
- Forgetting that discounts usually apply before tax, not after.
Frequently asked questions
What is input tax credit?
VAT you paid on business purchases can offset VAT you collected on sales. You remit only the difference, which is why clean records matter.
Should my prices include VAT?
Consumer-facing businesses often display inclusive prices; B2B usually quotes exclusive. Pick one convention and stay consistent.
Is GST calculated the same way?
Yes, the arithmetic is identical; only rates, registration thresholds and filing rules differ by country.
Related tools
Results are arithmetic on the numbers you enter, not predictions. Validate important figures with an accountant before making financial commitments.