About the Reverse VAT Calculator
Receipts and consumer prices usually include VAT. To book expenses or reclaim VAT you need the net price and the VAT portion. A common mistake is subtracting the rate from the gross price (e.g. 20% of £120 = £24), which is wrong; the correct method divides by 1 + rate (£120 ÷ 1.2 = £100 net, £20 VAT).
How to use it
- Enter the gross (VAT-inclusive) amount.
- Enter the VAT rate.
- Read the net amount and the VAT included.
Good to know
- Results are estimates for planning purposes and not financial, tax or legal advice. Lenders and tax authorities may calculate differently.