Remove VAT Calculator
Instantly extract the net price and VAT amount from any gross total. Supports UK standard 20%, reduced 5%, and zero 0% VAT rates.
Calculate Net Price from Gross
Enter the total gross amount (including VAT) and the applicable VAT rate to instantly see the net price and the exact VAT amount.
VAT Removal Tool
Reverse calculate your VAT-inclusive totals accurately.
How it Works
Understanding reverse VAT calculations
Enter Gross Total
Input the final price that already includes the VAT amount. This is the total your customer paid or the total on your invoice.
Select VAT Rate
Choose the correct VAT rate. The UK standard rate is 20%, but reduced rates of 5% or 0% apply to specific goods and services.
Instant Calculation
The calculator divides the gross amount by (1 + VAT rate) to find the net price, then subtracts the net price from the gross to find the VAT.
Verify & Record
Use the extracted net and VAT amounts for your bookkeeping, expense claims, or VAT return submissions.
UK VAT Rates
A general overview of the current Value Added Tax rates applied to different goods and services in the UK.
| VAT Rate | Percentage | Common Examples |
|---|---|---|
| Standard Rate | 20% | Most goods and services, electronics, clothing, professional services. |
| Reduced Rate | 5% | Home energy (gas/electricity), children’s car seats, sanitary products. |
| Zero Rate | 0% | Most food, books, newspapers, children’s clothing, public transport. |
| Exempt | N/A | Insurance, postage stamps, property transactions, finance services. |
VAT Calculation FAQ
Answers to the most frequently asked questions about removing VAT from gross totals in the UK.
To remove 20% VAT from a gross total, divide the gross amount by 1.2. For example, if the gross amount is £120, the net price is £120 / 1.2 = £100. The VAT amount is the difference, which is £20.
The universal formula is: Net Price = Gross Amount / (1 + (VAT Rate / 100)). Once you have the net price, you can find the VAT amount by subtracting the net price from the gross amount.
Yes. Simply change the VAT rate input from the default 20% to 5%. The calculator will then divide the gross amount by 1.05 to give you the correct net price and VAT amount for reduced-rate items like home energy or children’s car seats.
Yes, this calculator uses standard decimal rounding to two decimal places, which aligns with HMRC’s guidelines for most everyday calculations. However, for official VAT returns, always ensure your accounting software handles fractional penny rounding as required by your specific business setup.