Reverse VAT Calculator
Have a VAT-inclusive price? Work backwards to find the net amount and the VAT — at 20%, 5%, or any other rate.
Remove VAT
Removing 20% VAT from £120.00 leaves £100.00 net — the VAT portion is £20.00.
Results update as you type.
Formula
Reversing VAT from a tax-inclusive total is a single division:
net = gross / (1 + rate / 100).
The VAT portion is whatever's left:
vat = gross − net. Switching to the Add tab
works the opposite direction:
gross = net × (1 + rate / 100).
Related calculators
Frequently asked questions
How do I work backwards from a VAT-inclusive price?▾
If a price includes 20% VAT, the gross is 120% of the net. To find the net, divide the gross by 1.20 — that's what this calculator does. The VAT is the difference between the two. For example, a £120 VAT-inclusive price has a £100 net and £20 of VAT.
Why isn't the VAT just 20% of the gross price?▾
Because VAT is calculated on the *net* price, not the gross. If you took 20% of a £120 gross price you'd get £24, but that would imply a £96 net + £24 VAT = £120 gross — except 20% of £96 isn't £24, it's £19.20. The correct VAT on a £120 gross at 20% is £20, leaving £100 net. The reverse-VAT operation handles this circular dependency for you.
Can I do this with a calculator manually?▾
Yes — divide the gross by (1 + rate/100). At 20% that's gross / 1.2; at 5% it's gross / 1.05. The VAT is whatever's left after subtracting the net from the gross. This calculator just does the arithmetic for you and shows all three figures together.
When do I need this?▾
Mostly when you have a receipt or invoice showing only the gross (VAT-inclusive) total and need to know the VAT for accounting — for example, to reclaim VAT on a business expense, or to break down a price for an invoice line. It's also useful for understanding how much of a marked-up retail price is tax.
What if the price isn't actually VAT-inclusive?▾
Then the calculator gives you the wrong answer — there's no way to tell from the number alone whether VAT has been added. UK retail prices are almost always shown VAT-inclusive (it's a Consumer Rights Act expectation for consumer sales); B2B quotes are usually VAT-exclusive. If you're not sure, ask the seller or check the invoice for a separate VAT line.