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Reverse VAT Calculator

Enter a price including VAT and the VAT rate to get the price excluding VAT and the VAT amount. Switch to “Add VAT” to go from a net price to the total.

%

Common rates as a starting point. Rates change and some goods carry reduced rates, so confirm yours with your tax authority.

Price before VAT
—
Before taxVAT
Price before VAT—
+ VAT—
Total price with VAT—
Solution, step by step
    Several amounts? Split a whole list at the same rate, for example a month of receipts.
    Price incl. taxBefore taxVAT
    Total——
    The formula

    How to remove VAT from a price including VAT

    Reverse VAT takes a VAT-inclusive price back to the net price and the VAT inside it, as you need for a receipt, a quote or a VAT return.

    Remove VAT (reverse)Price before tax = Total ÷ (1 + rate)
    VAT = Total − Price before tax
    Add VATVAT = Price × rate
    Total = Price × (1 + rate)

    VAT is added to the net price, so a VAT-inclusive price is net × (1 + rate). To remove VAT, divide: by 1.2 at 20%, by 1.15 at 15%, by 1.05 at 5%.

    A handy shortcut: at 20% the VAT is one-sixth of the total, at 5% it is one twenty-first, and at 15% it is 3/23.

    Quick reference

    Divide-by table: remove VAT at common rates

    To take VAT out of a tax-inclusive price, divide by the figure in the second column. To find the VAT inside the total, multiply by the third.

    VAT ratePrice before tax = total ÷VAT = total ×Example: 1,000 incl. tax
    5%1.050.047619952.38 + 47.62
    10%1.10.090909909.09 + 90.91
    14%1.140.122807877.19 + 122.81
    15%1.150.130435869.57 + 130.43
    16%1.160.137931862.07 + 137.93
    17.5%1.1750.148936851.06 + 148.94
    20%1.20.166667833.33 + 166.67
    Worked examples

    Reverse VAT examples

    Tap an example to load it into the calculator.

    How to

    How to work out VAT from a total, by hand

    Turn the VAT rate into a decimal. 20% ÷ 100 = 0.2.
    Add 1. 1 + 0.2 = 1.2.
    Divide the total. £120 ÷ 1.2 = £100, the price excluding VAT.
    Subtract to get VAT. £120 − £100 = £20 of VAT.

    Stop working tax out by hand

    In EloERP each tax rate is set once as inclusive or exclusive. Every POS sale and invoice then splits the price into the amount before tax and the tax itself, and posts the tax to its own ledger account. In Pakistan, Saudi Arabia, Malaysia, the UAE and Lesotho it also files the invoice with the tax authority.

    • Tax-inclusive or exclusive prices per tax rate
    • Tax split on every receipt and invoice
    • Tax posted to its own ledger account
    • E-invoicing for FBR, ZATCA, MyInvois, UAE and Lekuka
    FAQ

    VAT calculator: questions

    How do I remove VAT from a price?
    Divide the price including VAT by 1 plus the VAT rate. At 20%, divide by 1.2: £120 ÷ 1.2 = £100 before VAT, and the VAT is £20.
    What is the reverse VAT formula?
    Price excluding VAT = price including VAT ÷ (1 + VAT rate ÷ 100). VAT = price including VAT − price excluding VAT.
    How do I work out 20% VAT from a total?
    Divide the total by 6. VAT at 20% is one-sixth of a VAT-inclusive price, because 20 ÷ 120 = 1/6. £120 ÷ 6 = £20.
    How do I calculate 5% VAT in the UAE from the total?
    Divide the total by 21, or the total by 1.05 for the price before VAT. AED 1,050 includes AED 50 of VAT on AED 1,000.
    How do I calculate 15% VAT in Saudi Arabia from the total?
    Divide by 1.15 for the price before VAT. SAR 1,150 is SAR 1,000 plus SAR 150 VAT. The VAT is the total × 15 ÷ 115.
    Why is taking 20% off the total wrong?
    Because VAT was added to the price before VAT. 20% of £120 is £24, but the VAT charged was £20. Always divide by 1.2, not subtract 20%.
    Is this VAT calculator free?
    Yes. It runs in your browser, needs no sign-up and sends nothing anywhere.
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