Extract the net amount and VAT from a VAT-inclusive gross price. Ideal for receipts and invoices.
This calculator is based on current HMRC VAT rates. Always verify rates at gov.uk/vat-rates. This is not tax advice.
If you have ever looked at a receipt and needed to work out how much of the total was VAT, this calculator is for you. The VAT reverse calculator takes a gross (VAT-inclusive) amount and splits it into the net (VAT-exclusive) amount and the VAT component. It is the opposite of our standard VAT Calculator, which adds VAT to a net amount. In the UK, VAT (Value Added Tax) is included in the price of most goods and services. The standard rate is 20%, the reduced rate is 5% (for items like home energy and child car seats), and some items are zero-rated or exempt. When you see a price tag of GBP 120, the net amount is GBP 100 and the VAT is GBP 20 at the standard rate. But working this out in your head for odd amounts is tedious and error-prone. This is a common task for anyone managing business expenses, preparing VAT returns, or reclaiming VAT on purchases. Self-employed workers, sole traders, limited company directors, and bookkeepers all need to separate VAT from gross amounts regularly. HMRC requires accurate VAT records, and getting the split wrong can lead to errors on your VAT return. The calculator supports all current UK VAT rates (20% standard, 5% reduced, 0% zero) plus a custom rate option for international use or special circumstances. It uses precise decimal arithmetic to avoid the rounding errors that spreadsheet formulas sometimes introduce, particularly important when dealing with large invoices or high-volume transactions. The pie chart provides a clear visual breakdown of how much of your total went to HMRC versus the actual cost of goods or services, making it easy to understand the tax impact at a glance.
To use the VAT reverse calculator: 1. Enter the Gross Amount. This is the total amount including VAT, as shown on your receipt, invoice, or price tag. 2. Select the VAT Rate. Choose from: - 20% Standard Rate (most goods and services) - 5% Reduced Rate (home energy, child car seats, sanitary products) - 0% Zero Rate (most food, books, children's clothing) - Custom Rate (for non-UK rates or special circumstances) 3. If you selected Custom Rate, enter the percentage in the custom rate field. 4. Review the results. The Net Amount shows the price excluding VAT. The VAT Amount shows exactly how much VAT is included. The Gross Amount confirms your input. The pie chart visualises the split. Common scenarios: - Processing expense receipts for VAT reclaim - Checking supplier invoices for correct VAT - Preparing quarterly VAT returns - Verifying till receipts from restaurants or shops
The VAT reverse calculation uses a simple formula: Net Amount = Gross Amount / (1 + VAT Rate / 100) VAT Amount = Gross Amount - Net Amount For the standard 20% rate: Net Amount = Gross / 1.20 VAT Amount = Gross - Net Example 1: GBP 120 at 20% standard rate Net = 120 / 1.20 = GBP 100.00 VAT = 120 - 100 = GBP 20.00 Example 2: GBP 105 at 5% reduced rate Net = 105 / 1.05 = GBP 100.00 VAT = 105 - 100 = GBP 5.00 Example 3: GBP 100 at 0% zero rate Net = 100 / 1.00 = GBP 100.00 VAT = 100 - 100 = GBP 0.00 Example 4: GBP 115 at custom 15% rate Net = 115 / 1.15 = GBP 100.00 VAT = 115 - 100 = GBP 15.00 A common shortcut for the 20% rate is to divide by 6 to find the VAT amount (since 20% of the net equals 1/6 of the gross). For GBP 120: 120 / 6 = GBP 20 VAT. However, this shortcut only works for 20% and the full formula is more reliable for any rate. For bookkeeping purposes, always round to two decimal places and keep records of both the net and VAT amounts for each transaction.
UK VAT rates are set by HMRC and published at gov.uk/vat-rates. Businesses with taxable turnover above GBP 90,000 (2024/25 threshold) must register for VAT. Once registered, you charge VAT on sales and can reclaim VAT on business purchases. VAT returns are typically submitted quarterly through your accounting software or the HMRC online portal. If you need to add VAT to a net amount rather than extract it, use our standard VAT Calculator. For understanding how VAT affects your pricing and profitability, the Markup vs Margin Calculator and Break-Even Calculator are useful companion tools. Remember that some items are VAT-exempt (not the same as zero-rated), and you cannot reclaim VAT on exempt purchases.