# VAT / sales tax

> Gross to net is a division, not a multiplication. The three figures always add back up.

Source: https://lopifi.com/tools/tax
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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- **Group:** Money

## Inputs

- `amount` — Amount
- `rate` — Rate %
- `direction` — The amount is (VAT and GST prices are usually quoted tax-inclusive; US sales tax is added on top of a net price.)
- `currency` — Currency (ISO 4217 code — sets the decimals: JPY 0, USD 2, KWD 3.)

Runs entirely in the browser: no network call, no data leaves the page. The same definition powers the Lopifi Tools Chrome extension.