Cómo Calcular Impuestos en Facturas (IVA, GST, Impuesto de Ventas)

How to Calculate Invoice Tax (VAT, GST, Sales Tax Explained)

Three Tax Systems Explained

There are three main ways taxes work on invoices:

1. VAT (Value Added Tax) — used in UK, EU, Australia
2. GST (Goods and Services Tax) — used in Canada, Australia, New Zealand
3. Sales Tax — used in the US and some countries

VAT (Value Added Tax)

Formula: Total = Amount + (Amount × VAT Rate)

Example: ``` Services rendered: $1,000 VAT (20%): $200 Total due: $1,200 ```

GST (Goods and Services Tax)

Formula: Total = Amount + (Amount × GST Rate)

Example: ``` Consulting services: $1,000 GST (10%): $100 Total due: $1,100 ```

Sales Tax (US & Other)

Formula: Total = Amount + (Amount × Sales Tax Rate)

Example: ``` Products sold: $500 Sales Tax (8.5%): $42.50 Total due: $542.50 ```

Which Tax Rate Applies to You?

United States? - Sales tax rate depends on your state (0–10%) - You may be exempt if you're a B2B service provider

UK or EU? - Use VAT (20% UK, 17–27% EU varies) - You may be exempt if under threshold (~£85K/year)

Canada? - Federal GST is 5%, plus provincial tax (0–10%) - Total combined is typically 5–15%

Australia, NZ, Singapore? - Use GST (Australia & NZ: 10%, Singapore: 7%)

[Use a tax-aware invoice generator](/free-vat-invoice-generator) to calculate automatically.