Remove VAT Calculator
Have a price that includes VAT and need to find the net amount? Enter the gross total and the VAT rate, and this calculator extracts the VAT portion and shows you the price before tax.
Formula
Net Amount = Gross Amount ÷ (1 + VAT Rate ÷ 100) VAT Amount = Gross Amount − Net Amount
To find the net price, divide the gross (VAT-inclusive) amount by 1 plus the VAT rate as a decimal. For a 20% rate, divide by 1.20. The difference between gross and net is the VAT amount.
Worked Examples
Frequently Asked Questions
How do I remove VAT from a price?▾
Divide the gross price by (1 + VAT rate as a decimal). For a 20% VAT rate, divide by 1.20. For example, £120 ÷ 1.20 = £100 net price.
Why can't I just subtract the percentage?▾
VAT is added on top of the net price, so the gross price is 120% of the net (for a 20% rate). Subtracting 20% of the gross gives the wrong answer. You must divide, not subtract.
Is the remove VAT formula the same for all countries?▾
The formula structure is the same — divide by (1 + rate). Only the rate changes by country: 20% for UK, 19% for Germany, 10% for Australia GST, and so on.
Related Calculators
All calculations are for informational purposes only. They should not replace professional financial, tax, or legal advice. Always consult a qualified professional for decisions affecting your finances or business.