Reverse VAT Calculator

How to work VAT out backwards

To reverse VAT — that is, to take VAT off a gross price — you divide rather than subtract. The VAT was added to the net figure, so the gross figure is the net multiplied by (1 + rate):

Net = Gross ÷ (1 + rate ÷ 100)  and  VAT = Gross − Net.

At 20% VAT, a £120 gross price gives £120 ÷ 1.2 = £100 net, so the VAT is £20. This is the same “reverse VAT” or “VAT backwards” calculation accountants use when reconciling VAT-inclusive takings.

Why subtracting 20% is wrong

A common mistake is to subtract 20% of the gross price. At 20% VAT that gives £96 from £120 — but the correct net is £100. Subtracting the rate from the gross always under- or over-states the VAT, because the rate applies to the net base, not the gross.

When you need a reverse VAT calculation

• Splitting a VAT-inclusive price into net + VAT for your bookkeeping or VAT return.
• Checking a supplier invoice — confirm the VAT charged matches the net amount.
• Converting retail prices to net costs so you can compare against VAT-exclusive quotes.
• Extracting VAT from takings when your till rolls only show gross totals.

Common rates

Enter any rate, or pick a preset region: UK 20%, Ireland 23%, Germany 19%, France 20%. See the full VAT and GST rates by country.

Reverse VAT worked examples

Need the opposite? Use the net-to-gross (add VAT) calculator, or the main VAT calculator.

Frequently asked questions