VAT Reverse Calculator
Work backwards from a VAT-inclusive price to find the net amount and VAT in the UK.
About VAT Reverse Calculation
The VAT Reverse Calculator helps you work backwards from a VAT-inclusive price to determine:
- •Net Amount: The price excluding VAT
- •VAT Amount: The VAT portion of the total price
This is useful when:
- •You need to know the pre-VAT amount for accounting purposes
- •You want to separate VAT from a total price
- •You need to complete VAT returns accurately
- •You're checking invoices from suppliers
This calculator is for informational purposes only.
Please consult with a qualified accountant or tax advisor for specific advice.
UK VAT Rates Explained
Standard Rate (20%)
Most goods and services in the UK, including electronics, furniture, and professional services.
Reduced Rate (5%)
Includes domestic fuel, children's car seats, home energy-saving materials, and some renovation works.
Zero Rate (0%)
Applies to most food items, books, newspapers, children's clothes, and some medical supplies.
Frequently Asked Questions
- What is a VAT Reverse Calculator?
- A VAT Reverse Calculator helps you work backwards from a VAT-inclusive price to calculate the VAT-exclusive amount and the VAT itself. It’s commonly used in the UK when you know the total price but need to find out how much VAT was included.
- How does the VAT Reverse Calculator work?
- You enter a price that includes VAT, and the calculator removes the VAT portion to give you the net (VAT-exclusive) price and the VAT amount. It uses the standard UK VAT rate of 20% by default, but you can adjust it if needed.
- Why would I need to reverse calculate VAT?
- You may need to reverse calculate VAT to prepare invoices, complete VAT returns, or understand how much of a sale price is actual VAT. It’s especially helpful for UK businesses, freelancers, and anyone dealing with VAT-inclusive pricing.
- Can the VAT Reverse Calculator handle different VAT rates?
- Yes, many VAT Reverse Calculators let you choose or enter different VAT rates. In the UK, common rates include the standard rate (20%), reduced rate (5%), and zero rate (0%).
- Is the VAT Reverse Calculator accurate for UK VAT?
- Yes, as long as it uses the correct VAT rate, the VAT Reverse Calculator provides accurate results based on UK VAT rules. It’s ideal for quickly calculating VAT from a gross amount.
- What formula does the VAT Reverse Calculator use?
- To find the VAT from a VAT-inclusive price, the calculator uses the formula: VAT = VAT-inclusive price × VAT rate ÷ (100 + VAT rate). For example, for £120 at 20% VAT, the VAT is £20 and the net amount is £100.
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