Free tool
VAT and IGI calculator
Add tax to a price, or find out how much of a price is tax. Preset for UK VAT and Andorra’s IGI, or type any rate.
Free, no sign-up. Nothing you type is sent anywhere.
Try your own figures
Any currency: amounts carry no sign. Prices before tax unless a box says otherwise.
Price with tax
36
Before tax30
Tax at 20%6
With tax36
Adding tax to a price
Multiply the price before tax by one plus the rate. At 20% that is × 1.2; at 4.5% it is × 1.045. The difference is the tax you collect and pass on, not money the shop keeps.
Taking tax out of a price that includes it
Divide the price by one plus the rate — never take the rate off the price. A price that includes 20% VAT is 120% of the price before tax, so taking 20% off it removes too much.
This is the sum to do when a supplier’s invoice, a competitor’s shelf or your own price list shows prices with tax and you need the figure your margin is worked out on.
Which price goes on the shelf
Shoppers expect the price on the shelf to be the price they pay, so a beauty shop usually sets round prices with the tax inside and lets the tax fall out of them. Price lists for other businesses tend to show prices before tax.
Decide which way your shop works before your first sale and stick to it: switching later quietly changes what every product costs. In Gibraltar there is no VAT, so a shop there simply charges no tax.
How Zero POS does this for you
Tax worked out on every sale, the way you charge it
In Zero POS you set your tax once for the whole workspace: type your rate — 20 for UK VAT, 4.5 for Andorra’s IGI, 0 for none — and say whether your prices already include it. The product form then tells you which side of the tax each price sits on.
Discounts come off before the tax is worked out, the till shows a tax line with its rate above the total, and the receipt prints it the same way. Reports show revenue with tax and net revenue without it, and margins are worked out on the net figure.
Free during early access · no card needed