A reverse VAT calculator takes a price that already includes VAT and works out the net price and the VAT amount. Enter your gross figure, pick the rate, and you get both parts straight away.
[ Reverse VAT tool sits here: amount field (gross, VAT inclusive), rate choice of 20%, 5% or 0%, output shows Net and VAT. ] (tool embeds here)
What a reverse VAT calculation does
Most prices you see already include VAT. A reverse calculation works backwards from that total to show two things:
- The net price, which is the amount before VAT
- The VAT amount hidden inside the total
This is also called removing VAT or working out VAT backwards.
How to remove VAT by hand
Divide the gross price by the VAT fraction for your rate.
- At 20%: gross price divided by 1.2
- At 5%: gross price divided by 1.05
Example at 20% Gross price £600. £600 divided by 1.2 = £500 net. The VAT is £600 minus £500, which is £100.
At the standard rate you can also take a shortcut. The VAT is one sixth of the gross price, so £600 divided by 6 is £100.
Why you should not subtract 20%
Taking 20% off a gross price gives the wrong answer. £600 minus 20% is £480, which is too low. VAT is worked out on the net price, so you divide by 1.2 rather than subtract. The reverse calculator does this for you.
When you need to remove VAT
- Splitting the VAT out of a supplier receipt for your records
- Checking how much VAT is inside a price you were quoted
- Working out the net value of a sale for your accounts
- Filling in a VAT return
Frequently asked questions
How do I reverse VAT on a price? Divide the gross price by 1.2 at the standard rate. The result is the net price, and the VAT is the gross price minus the net price.
How much VAT is in £120 at 20%? £120 divided by 1.2 is £100 net, so the VAT is £20.
Is reverse VAT the same as removing VAT? Yes. Both mean taking a VAT inclusive price and finding the net price and the VAT amount.
Can I reverse VAT at 5%? Yes. Divide the gross price by 1.05. For example, £525 divided by 1.05 is £500 net, so the VAT is £25.