VAT Calculator

Our reverse VAT calculator allows you to find the Nett value. Simply enter your Gross price and the VAT rate to find the answer.

A reverse VAT calculator is designed to quickly and accurately calculate a VAT rate in the opposite direction. Instead of simply multiplying the cost value by the VAT rate to determine the total amount due, the calculator can be used to calculate the net value before VAT is added. This makes it easier and faster to calculate accurate amounts when dealing with multiple prices, rates, and values.

Example problem: I paid £100 for an item and I need to find the price excluding VAT.

How to calculate VAT

Calculating VAT (Value Added Tax) manually is a straightforward process once you understand the basic principles. In the UK, as of my last update, the standard VAT rate is 20%, but there are also reduced rates and exemptions for certain goods and services. Here’s how to calculate VAT:

Adding VAT to a Price

Determine the Net Amount: This is the price of the item or service without VAT.

Calculate the VAT Amount:

  • Multiply the net amount by the VAT rate (e.g., 20%).
  • Formula: VAT Amount = Net Amount × VAT Rate
  • Example: If the net amount is £100 and the VAT rate is 20%, then VAT Amount = £100 × 0.20 = £20.

Add the VAT to the Net Amount:

  • Formula: Gross Amount = Net Amount + VAT Amount.
  • Example: £100 (Net Amount) + £20 (VAT) = £120 (Gross Amount).

 

Subtracting VAT from a Price

Determine the Gross Amount: This is the total price of the item or service including VAT.

Calculate the Net Amount:

  • If you know the VAT rate, divide the gross amount by (1 + VAT Rate).
  • Formula: Net Amount = Gross Amount / (1 + VAT Rate).
  • Example: If the gross amount is £120 and the VAT rate is 20%, then Net Amount = £120 / 1.20 = £100.

Calculate the VAT Amount:

  • Subtract the Net Amount from the Gross Amount.
  • Formula: VAT Amount = Gross Amount – Net Amount.
  • Example: £120 (Gross Amount) – £100 (Net Amount) = £20 (VAT Amount).

Remember, these calculations are based on the current standard VAT rate of 20%. If dealing with a reduced rate (like 5%) or a zero rate, adjust the VAT rate in the calculation accordingly. Always stay updated with the current VAT rates from HMRC as they may change.

More Calculators

Enter the amount inclusive of VAT: £

Enter VAT/TAX Rate: %

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