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Reverse VAT Calculator

Remove VAT from a gross (VAT-inclusive) price to find the net amount and VAT portion, or add VAT to a net price to find the gross total. Works with any VAT rate worldwide, including UK 20%, EU standard rates (19% to 27%), and reduced rates. Essential for invoicing, bookkeeping, expense claims, and freelance pricing.

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Formula

Remove VAT: Net = Gross / (1 + rate/100). Add VAT: Gross = Net x (1 + rate/100). VAT = Gross - Net.

When a price includes VAT, the net (pre-tax) amount is found by dividing the gross by (1 + VAT rate as a decimal). For example, with 20% VAT, divide by 1.20. The VAT portion is the difference between gross and net. To add VAT, multiply the net price by (1 + rate). This is the standard exclusive-rate model used in the UK, EU, and most countries with VAT.

Worked Example

Remove VAT: Gross price is 120 with 20% VAT. Step 1: Net = 120 / 1.20 = 100 Step 2: VAT portion = 120 - 100 = 20 Add VAT: Net price is 100 with 20% VAT. Step 1: Gross = 100 x 1.20 = 120 Step 2: VAT portion = 120 - 100 = 20

Frequently Asked Questions

What does reverse VAT mean?

Reverse VAT means calculating backwards from a VAT-inclusive (gross) price to find the original pre-tax (net) amount and the VAT portion. For example, if a receipt shows 120 including 20% VAT, the net is 100 and the VAT is 20.

Does this work for all countries?

Yes. The math is the standard exclusive-rate model used worldwide. Enter your country VAT rate: UK (20%), Germany (19%), France (20%), Netherlands (21%), Sweden (25%), India GST (18%), Australia GST (10%), or any other rate.

Can I use this for US sales tax?

If tax is applied as a simple percentage on top of the net price, the same formulas work. However, US sales tax is typically added at checkout and shown separately, so "reverse" calculation is less common than in VAT countries where tax is included in the sticker price.

What if the VAT rate is zero?

With a 0% rate, net and gross are identical and VAT is zero. The calculator handles this correctly. Zero-rated goods (like some food items in the UK) have no VAT but are still technically within the VAT system.

How do I handle multiple VAT rates on one invoice?

Calculate each line item separately using its applicable rate (standard, reduced, or zero), then sum the results. This calculator handles one amount and one rate at a time.

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