Use our free reverse VAT calculator to find the price before VAT and the VAT included in your total.
Enter the amount including VAT from your invoice or receipt and select the correct rate. Your results update automatically as you change the amount or rate.
If your starting price excludes VAT, choose Add VAT to calculate the VAT amount and the total your customer will pay.
A calculation to help you, not tax advice. Uses HMRC's current UK VAT rates.
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How to Use Our Reverse VAT Calculator
Here is a step by step guide on how to use our reverse VAT calculator.
Choose Remove VAT or Add VAT
Choose Remove VAT when your amount includes VAT, such as the total on a supplier’s invoice or a selling price that includes tax.
Select Add VAT when you have a price before VAT. The calculator applies your chosen rate to calculate the tax and the full price.
The number in the amount field stays the same when you switch options. Check it before continuing and enter a different starting amount if needed.
Enter Your Amount or Adjust the Slider
Enter your amount in pounds and pence, using up to two decimal places. For example, type 49.99 for a receipt totalling £49.99.
The slider lets you adjust the amount in whole pounds. Use the amount field when you need to include pence.
In Remove VAT mode, the field is labelled Amount including VAT. In Add VAT mode, it changes to Amount excluding VAT.
Select 20%, 5%, 0% or a Custom VAT Rate
Select the VAT rate shown on your invoice or the rate that applies to your sale. The calculator offers three preset options: 20% Standard, 5% Reduced and 0% Zero.
Choose Custom if you need another percentage. For an older invoice charged at 17.5%, for example, enter 17.5 in the custom rate field.
The calculator uses the percentage you select. Confirm the applicable rate first, as the tool cannot determine it from the price alone.
View the Results
Our VAT reverse calculator shows two results. These update automatically as you change the amount or VAT rate.
Price Excluding VAT or Price Including VAT
In Remove VAT mode, Price excluding VAT shows the price before tax, after VAT has been deducted from your total.
In Add VAT mode, Price including VAT shows your starting price plus VAT, giving you the full amount payable.
VAT Amount
This shows the VAT included in your original total when you choose Remove VAT, or the VAT added to your starting price when you choose Add VAT.
Select Clear to start a new calculation. This clears the amount and resets the VAT rate to 20%. Your current Remove VAT or Add VAT selection stays unchanged.
How do you calculate reverse VAT?
Here is the formula to calculate the reverse VAT.
Net price = Gross price ÷ (1 + VAT rate ÷ 100)
The gross price is your total including VAT. The net price is the amount before VAT.
Let’s take an example.
For an invoice totalling £360 including VAT at 20%, follow these steps:
1.Confirm your total and VAT rate. Your gross price is £360, and the VAT rate is 20%.
2.Calculate the number to divide by. Divide 20 by 100 to get 0.20, then add 1. This gives you 1.20.
3.Calculate the price before VAT. Divide your total by 1.20: £360 ÷ 1.20 = £300. This is your net price.
4.Find the VAT amount. Subtract the £300 net price from your £360 total. The difference is £60 VAT.
Your invoice contains £300 before VAT and £60 VAT.
VAT is calculated on the price before tax. This is why you divide by 1.20 to remove 20% VAT rather than subtracting 20% from the total.
How to Add VAT to a Price Excluding VAT
To add VAT, apply the relevant VAT rate to the net price, which is the amount before VAT. The total after adding VAT is the gross price.
Gross price = Net price × (1 + VAT rate ÷ 100)
For a £250 net price at 20% VAT:
Gross price = £250 × (1 + 20 ÷ 100) = £300
Your customer pays £300, which includes £50 VAT.
At 20%, this means multiplying your net price by 1.2. At 5%, multiply it by 1.05.
Which UK VAT Rate Should You Select?
Choose the rate that applies to the goods or services you are checking. For a purchase, look at the rate shown on the supplier’s VAT invoice or receipt.
VAT rate
Calculator option
When it applies
20%
Standard
Most goods and services
5%
Reduced
Certain goods and services, such as children’s car seats and domestic fuel
0%
Zero
Zero-rated goods and services, such as most food and children’s clothing
At 0%, the calculator shows £0 VAT and leaves the price unchanged. However, a £0 result does not confirm that a transaction is zero-rated. Exempt transactions and those outside the scope of VAT also carry no VAT, but follow different rules.
If the VAT rate is not shown, ask your supplier to confirm it before you calculate. Do not assume that a receipt total includes VAT at 20%.
Who can Use Our Reverse VAT Calculator
You can use our calculator whenever you know the VAT rate and need to check a price before or after VAT.
Business owners and sole traders can check supplier invoices and separate the net sales value from VAT within their own selling prices.
Retailers and online sellers can calculate how much of a planned customer price is VAT and how much remains before tax.
Bookkeepers and accounts teams can check VAT calculations on invoices and expense receipts before recording the figures.
Individuals and businesses that are not VAT registered can see how much VAT a supplier has included in a purchase price.
If one supplier’s quote includes VAT and another excludes it, the calculator also helps you compare both prices on the same basis.
Limitations of Our Reverse VAT Calculator
The calculator applies your selected VAT rate to the amount you enter. Check these points before using the result in your accounts:
One VAT rate at a time: If an invoice includes items at different rates, calculate the total for each rate separately.
Rounding can affect the result. The calculator rounds VAT to the nearest penny, with half a penny rounded up. It then uses that rounded amount to calculate the price including or excluding VAT. For £100.05 including VAT at 20%, the result is £16.68 VAT and £83.37 before VAT. A supplier who rounds each invoice line separately can arrive at a slightly different total.
Special VAT rules need separate checks: The calculator does not apply Flat Rate Scheme or margin scheme rules. It also does not determine whether a VAT reverse charge applies to your transaction.
Negative amounts cannot be entered: The amount field removes minus signs and treats the figure as positive. Handle credit notes and refunds separately.
The result covers one amount: Your overall VAT bill also depends on your other sales, VAT you can reclaim on purchases and any required adjustments.
Need Help With Your VAT Calculations?
Our VAT accountants can check your calculations and confirm which VAT rates apply to your sales and purchases. We can also review the VAT you can reclaim and prepare your VAT returns.
Book a free initial consultation to discuss your VAT questions.
Reverse VAT means using the VAT rate to calculate the price before VAT from a total that already includes VAT. This helps you separate the net price and the tax charged on an invoice or receipt.
How do you take 20% VAT off a price in the UK?
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When a price already includes VAT at 20%, divide the total by 1.2 to find the price before VAT. For example, an invoice totalling £120 including 20% VAT has a price before VAT of £100 and contains £20 VAT.