UK Reverse VAT Calculator
Calculate the net price and VAT amount from a VAT-inclusive UK total using the standard VAT rate.
Interactive calculator
Calculate tax backwards
£120.00 at 20% VAT: pre-tax £100.00, VAT £20.00.
Estimate only. Verify official rates before filing, invoicing, or making tax decisions.
Primary query
uk reverse vat calculator
Default rate
20%
Rate source
GOV.UK VAT ratesLast updated
2026-05-14
Formula
How reverse tax calculation works
Start with the tax-inclusive total, then divide by 1 plus the tax rate. Use the tax rate as a decimal in the formula.
Pre-tax Price = Total Price / (1 + Tax Rate)
Tax Amount = Total Price - Pre-tax Price
Example
£120.00 with 20% VAT
- VAT multiplier = 1.20
- Net price = 120 / 1.20 = 100.00
- VAT amount = 20.00
Region
United Kingdom tax context
Country
United Kingdom
Tax system
VAT
Reference rate
20%
The UK also has reduced and zero-rated VAT categories. Use the rate that matches your item. Always verify the rate for the exact product, location, and filing period before making tax decisions.
Rate breakdown
Estimated split for £120.00.
- Standard VAT rate20% reference rate
- 20% / £20.00
Source checked 2026-05-14: GOV.UK VAT rates. The UK also has reduced and zero-rated VAT categories. Use the rate that applies to the item or service.
FAQ
uk reverse vat calculator questions
How do you reverse calculate tax?
Divide the tax-inclusive total by 1 plus the tax rate. For example, with a 20% tax rate, divide the total by 1.20.
What is the reverse tax formula?
Pre-tax price = total price / (1 + tax rate). Tax amount = total price - pre-tax price.
Is this calculator tax advice?
No. This is an educational calculator for estimates. Confirm official rates and rules before filing, invoicing, or making compliance decisions.
How do you remove 20% VAT from a price?
Divide the VAT-inclusive price by 1.20. The difference between the total and the net price is the VAT amount.
Should I subtract 20% to remove UK VAT?
No. VAT is calculated on the net price, not the VAT-inclusive total. For a 20% VAT-inclusive price, divide by 1.20 instead of subtracting 20% from the total.
Why is VAT one sixth of a 20% VAT-inclusive price?
At 20% VAT, the gross price is 120% of the net price. The VAT portion is 20/120 of the gross total, which simplifies to one sixth.
How do I reverse a UK reduced VAT rate?
Use the same formula with the applicable rate. For a 5% VAT-inclusive price, divide the gross price by 1.05 and verify the rate on GOV.UK.
Related tools