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Global Finance

Global Tax Calculator

Instantly calculate GST, VAT, or Sales Tax for any country. Switch between adding tax or reverse-calculating to find the original price.

$

TAX INVOICE

Global / Generic

Subtotal$100.00
Tax (18%)+$18.00
Total$118.00

Generated by Universal Converters

Global Tax Systems Explained

Understanding the difference between VAT, GST, and Sales Tax.

Europe & UK
VAT System

Standard rates are typically high (17-27%). Charged at every stage of production. Businesses claim input credit.

India
Dual GST

Dual model (Central + State). Standard rates are 5%, 12%, 18%, and 28%. Gold has a special 3% rate.

USA
Sales Tax

No federal VAT. Tax is charged only at the final sale. Rates vary by State, County, and City (0% to 10%+).

Canada
GST + HST

Federal GST (5%) is often combined with Provincial tax (PST) to create a single "Harmonized Sales Tax" (HST).

Tax FAQs

Q.What is the difference between GST, VAT, and Sales Tax?

VAT and GST are 'multi-stage' taxes charged at every step of production, allowing businesses to claim credit for taxes paid. Sales Tax (common in the USA) is a 'single-stage' tax charged only once at the final sale to the consumer.

Q.How do I remove tax from a total price (Reverse Calculation)?

To find the pre-tax price, divide the Total Amount by (1 + Tax Rate/100). For example, if the total is $118 and the tax is 18%, divide 118 by 1.18 to get $100. Simply subtracting 18% is mathematically incorrect.

Q.Why does the USA not have a VAT?

The US is the only major developed economy without a federal value-added tax. Instead, it relies on state-level Sales Taxes, which vary wildly (e.g., 0% in Delaware vs. over 10% in parts of California).

Q.What are the current GST rates in India?

India uses a slab system: 5% (Essentials), 12% & 18% (Standard Goods/Services), and 28% (Luxury items). Gold is taxed at a special rate of 3%.