Invoice tax and withholding calculator
Work out the numbers at the bottom of an invoice: add VAT, GST or sales tax on top, or find the tax inside a price that already includes it. If your client deducts withholding tax, see what will actually reach your account. You get lines you can paste on the invoice.
How the numbers work
- Tax on top: amount before tax = your prices − discount; tax = that × rate; total = the two added. Example: 1,000 at 5% VAT → 50 VAT, 1,050 total.
- Prices that already include tax: amount before tax = price ÷ (1 + rate); tax = price − that. Example: 1,050 including 5% → 1,000 + 50. Taking 5% of 1,050 (52.50) would overstate the tax.
- Withholding: withheld = the chosen base × the withholding rate; you receive = invoice total − withheld. Example: 10% withheld on the 1,000 before tax → 100 withheld, so 950 arrives instead of 1,050.
- Amounts are rounded to 2 decimals. The tax is rounded first and everything else follows from it, so the lines always add up.
Before you put tax on an invoice
- Only charge tax you're registered for. Adding VAT or sales tax usually requires a tax registration number, which then belongs on the invoice. If you're not registered, don't add a tax line just because a template has one.
- Cross-border work is often different. Services billed to a client in another country are treated in many different ways (zero-rated, reverse charge, exempt, or taxed where the client is). Check the rules for your country and the client's before you add a rate.
- Withholding is usually the client's job. You invoice the full amount; the client deducts and pays the withheld part to the tax authority. Ask for proof of the deduction, because you may be able to claim it against your own tax. Who withholds, how much, and on which amount depends on the country and your status.
- Say what you expect to receive. If you know the client withholds, a line such as the one above avoids a "short payment" argument later.
This calculator does arithmetic only. It is not tax advice, and it doesn't know your country's rates. Check with your tax authority or an accountant.
Keeping track of what actually arrived
The free Kitebill app puts a tax / VAT % and a discount on every invoice and prints your tax ID. It adds tax on top (one rate per invoice) and has no separate withholding line. When the payment arrives, record the amount that actually landed in Amount received and any platform or transfer charges in Fees, so your income totals match your bank. It's free for 3 clients and 10 invoices, with no account, and Pro is US$29 once. Just need a single invoice? Use the free invoice generator.