Remove VAT from a price
Break a tax-inclusive price down into the net amount and the tax.
Calculator inputs
Results
Enter your values and press “Calculate” to see the result.
In short
- What it calculates
- Break a tax-inclusive price down into the net amount and the tax.
- Formula used
Net = gross / (1 + rate/100)- Example
- A £1,200 price with 20% included:
VAT included calculator
When a price already contains the tax, subtracting the percentage gives the wrong answer.
You have to divide, not subtract: this calculator performs the reverse operation properly.
How it works
The gross price equals the net amount multiplied by the tax factor. To recover the net you divide by that factor, and the tax is the difference.
Formula
Net = gross / (1 + rate/100)
Tax = gross − net
Tax share = tax / gross × 100
Worked example
A £1,200 price with 20% included:
Net: 1,200 / 1.20 = £1,000
Tax: £200
Subtracting 20% would give £960, which is wrong.
Explanation
How it appears on an invoice
A correct invoice never shows only the total: it breaks out the taxable base, the rate applied and the resulting tax. If you have the final price and need to fill in those three fields, this calculator does exactly that job. It is the daily task of anyone who receives receipts and has to book them.
Rounding per line or per invoice
When an invoice has several lines, the tax can be calculated line by line and then summed, or applied to the total. The two methods can differ by a cent, and that difference is the usual reason a bookkeeping entry fails to reconcile. The prudent approach is to always use the same method and document it.
Several rates on one receipt
A supermarket shop usually mixes products at standard, reduced and super-reduced rates. You cannot apply a single percentage to the total: the amounts must be separated by rate. That is why the receipt details the base and tax for each one separately.
When you can deduct
Only someone registered as a business or professional can recover the tax, with a full invoice in their name and for expenses connected to the activity. A simplified receipt without identification gives no right to deduct, however genuine the expense.
Frequently asked questions
Why can I not just subtract 20%?
Because that 20% was calculated on the net amount, not on the gross. Subtracting it from the gross removes too much.
What share of the final price is VAT?
At a 20% rate the tax is 16.67% of the gross price, not 20%.
Why does my receipt show several VAT rates?
Because each product is taxed according to its category. The receipt separates the base and tax for each rate so the total reconciles.
Can I deduct from a simplified receipt?
No. Deduction requires a full invoice with your tax details, and the expense must relate to your business activity.
Need to calculate something else?
These tools are often used alongside this calculator.
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