Reverse VAT calculator
Remove VAT from a Price
Enter a gross amount and VAT or GST rate to find the net price and tax already included.
20% VAT/GST removed from the gross amount.
What is reverse VAT?
Reverse VAT calculation separates a tax-inclusive gross price into the original net amount and the VAT or GST included in that price. It is useful when a receipt, invoice, or advertised price shows only the final amount.
How to remove VAT from a price
Convert the VAT rate to a decimal, add 1, and divide the gross price by that number. The formula is Net = Gross ÷ (1 + VAT rate ÷ 100). Then calculate the included tax with VAT = Gross − Net.
Do not simply subtract the VAT percentage from the gross price. The VAT percentage is applied to the net price, not to the tax-inclusive total.
Example calculation
For a gross price of 120 with a 20% VAT rate, divide 120 by 1.20. The net price is 100, and the VAT included is 20.
FAQ
How do I remove VAT from a gross price?
Divide the gross price by 1 plus the VAT rate as a decimal. Subtract the net result from the gross amount to find the included VAT.
Is removing 20% VAT the same as subtracting 20%?
No. A price containing 20% VAT is divided by 1.20. Subtracting 20% from the gross amount produces a different and incorrect net value.
Can this calculator be used for GST?
Yes. The same calculation works when a gross price includes GST at the percentage you enter.
Which VAT or GST rate should I enter?
Use the rate that actually applies to the transaction. Rates can vary by country, product, service, and date, so confirm the applicable rate from an authoritative source.
Related tools
Use the VAT/GST calculator to add tax to a net price or choose a country rate. Use the currency converter for informational exchange-rate estimates.