Reverse VAT Calculator
Enter a VAT-inclusive price to get the net amount and the VAT portion. Divides by the rate rather than subtracting it, which is the only way the figures reconcile.
This page contains affiliate links. How we make money
How to remove VAT from a gross price
A VAT-inclusive price is the net amount plus the tax, which makes it 120% of the net at the UK standard rate. To get back to 100%, divide by 1.2 — do not subtract 20%.
An invoice totals £540 including 20% VAT.
- Net = 540 ÷ 1.2 = £450.00
- VAT = 540 − 450 = £90.00
- Check: £450 + 20% = £540 ✓
Subtracting 20% from £540 would give £432 — £18 adrift, and wrong in your favour on the VAT line, which is the direction HMRC notices.
The VAT fraction shortcut
If you only want the tax and not the net figure, multiply the gross by the VAT fraction. At 20% the fraction is 1/6, because the VAT is one sixth of a 120% total. It is the same arithmetic in one step.
| Rate | Divide gross by | VAT fraction |
|---|---|---|
| 20% (UK standard) | 1.20 | 1/6 |
| 5% (UK reduced) | 1.05 | 1/21 |
| 23% (Ireland) | 1.23 | 23/123 |
| 19% (Germany) | 1.19 | 19/119 |
| 21% (Spain, NL) | 1.21 | 21/121 |
Rounding on invoices
Reversing VAT rarely lands on an exact penny. A £100 gross at 20% gives a net of £83.3333…, and how you round that decides whether your invoice adds up. Round once, at the point the figure becomes money — £83.33 — and derive the VAT as the difference (£16.67) rather than rounding it separately. Rounding both independently is how a line ends up a penny out from its own total.
The calculator above keeps full precision internally and only rounds the display, so the check line always reconciles. Where the rounded figure would not reconcile exactly it shows ≈ rather than =, which is a deliberate signal that a penny is hiding in the decimals rather than an error in the arithmetic.
When you need the net figure
Reclaiming input VAT. A VAT return needs the net and the tax separately. Supplier receipts frequently show only the gross, so every one of them has to be reversed before it can be entered.
Quoting ex-VAT to business customers. B2B prices are conventionally quoted net, because the buyer reclaims the tax. If your pricing was set gross, you need the net to quote consistently.
Checking a supplier's arithmetic. Invoices with a VAT line that does not equal gross minus net are more common than they should be, and the discrepancy is yours to explain at inspection.
Reversing US sales tax instead? Use the reverse sales tax calculator — it is a different calculation from a discount, and mixing the two is the mistake this site exists to prevent.
Frequently asked questions
How do you remove VAT from a price?
Divide the gross price by 1 plus the VAT rate. At the UK standard rate of 20%, divide by 1.2: a £120 gross price is £100 net, and the VAT is £20.
Why can I not just take 20% off the gross price?
Because the VAT was calculated on the net figure, not the gross one. Taking 20% off £120 gives £96, which is £4 short of the correct £100. The error grows with the invoice.
What is the VAT fraction?
A shortcut for finding the VAT directly from a gross amount. At 20% it is 1/6, so £120 × 1/6 = £20. At the 5% reduced rate it is 1/21.
What are the UK VAT rates?
The standard rate is 20%, the reduced rate is 5% (domestic fuel, some energy-saving materials), and zero rate is 0% (most food, children’s clothing, books). Zero-rated is not the same as exempt.
Do I round the net figure before or after adding it up?
Round once, at the point the number becomes money, and never round an intermediate step. Rounding each line before totalling is how an invoice ends up a penny out from its own VAT line.