Understanding Sales Tax and Reverse Calculation
Sales tax is an indirect tax on consumption. For businesses, knowing how to switch between pre-tax and total prices is a daily necessity.
🔄 Why Use Reverse Calculation?
If you know the final price paid (including tax) and the applicable rate, you can't simply subtract the percentage. You need to use the reverse calculation formula: Pre-Tax = Total / (1 + Rate/100). Our tool automates this operation to avoid any accounting errors.
Calcul du HT
TTC ÷ (1 + Taux)
Frequently Asked Questions
To calculate the total price, multiply the pre-tax amount by (1 + tax rate / 100). For example, for a $100 item with 20% tax: $100 × 1.20 = $120 total.
To find the pre-tax amount, divide the total price by (1 + tax rate / 100). For example, for a $120 total with 20% tax: $120 / 1.20 = $100 pre-tax.
Sales tax rates vary by country and region. In the US, state sales tax ranges from 0% to 10%+. In Europe, VAT rates are typically 15-27% (standard rate). The UK has 20% VAT, France has 20%, Germany has 19%.
Deductible tax (or input VAT) is the sales tax paid on business purchases that a company can recover from the government. It's deducted from the tax collected on sales. Only businesses registered for tax can claim deductions.