How to use the Reverse VAT Calculator
- 1 Choose whether to add VAT (net → gross) or remove VAT (gross → net).
- 2 Enter the amount and pick a country, or type your own VAT rate.
- 3 Read the net amount, the VAT and the gross amount.
Working backwards from a gross price
Receipts and consumer prices include VAT, but bookkeeping, expense claims and price comparisons often need the net amount. The reverse VAT formula divides the gross amount by one plus the rate:
net = gross / (1 + rate / 100) and VAT = gross − net
For example, a receipt of £54.00 at the UK standard rate of 20% contains £54.00 / 1.20 = £45.00 net and £9.00 VAT.
The VAT fraction
Accountants sometimes use the VAT fraction instead: at 20% the VAT is 1/6 of the gross amount, at 21% it is 21/121, and at 19% it is 19/119. The calculator applies the exact formula for any rate, including reduced rates such as 5% or 9%.
Why not just subtract the percentage?
Taking 20% off £120 gives £96, not the correct £100, because VAT is calculated on the net price. The reverse calculator avoids this classic mistake.
Frequently asked questions
How much VAT is in a gross price at 20%?
One sixth. Divide the gross price by 6 to get the VAT, or by 1.2 to get the net price.
How much VAT is in a gross price at 21%?
21/121 of the gross amount, which is about 17.36%. Divide by 1.21 to get the net price.
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