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Reverse VAT calculator: how it works
Divide the gross price by 1 plus the rate. At 20%, divide by 1.2: £1,200 ÷ 1.2 = £1,000 net, so the VAT is £200.
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Reverse VAT, worked through
A supplier's receipt shows £372.00 including 20% VAT. Net = £372.00 ÷ 1.2 = £310.00. VAT = £372.00 − £310.00 = £62.00, which is also £372.00 ÷ 6.
| Gross | Rate | VAT fraction | VAT | Net |
|---|---|---|---|---|
| £120.00 | 20% | 1/6 | £20.00 | £100.00 |
| £372.00 | 20% | 1/6 | £62.00 | £310.00 |
| £105.00 | 5% | 1/21 | £5.00 | £100.00 |
| £119.00 | 19% (DE) | 19/119 | £19.00 | £100.00 |
How to use the reverse VAT calculator
- Enter the price including VAT.
- Pick the VAT rate that was charged.
- Read the net amount and the VAT inside the price.
When you need the net price
Reclaiming input VAT on purchases, recording expenses in your books net of VAT, or quoting a client a net price when you only know what they will pay all start from the gross figure. Your VAT return shows net sales and VAT separately, so every gross amount has to be split this way.
Questions people ask
How do I calculate VAT backwards?
Divide the gross price by 1 plus the rate. At 20%, divide by 1.2: £1,200 ÷ 1.2 = £1,000 net, so the VAT is £200.
Why is reverse VAT not just 20% of the price?
VAT was charged on the net price, so it is 20% of the net, not of the gross. Of a gross price, the VAT is one sixth (20/120). 20% of £1,200 would be £240, which is wrong.
What is the VAT fraction at 5%?
5/105, which is 1/21. On a £105 gross price at 5%, the VAT is £5.
Can I use this for other countries?
Yes. Choose Custom and enter the rate, for example 19 for Germany or 23 for Ireland.