Remove VAT Calculator – Take VAT Off Any Price Instantly
Enter a gross (VAT-inclusive) amount below to instantly extract the net price and VAT amount.
Looking to add VAT to a net price instead? Use our Add VAT Calculator →
Enter a gross (VAT-inclusive) amount above, press ‘Remove VAT’, and this calculator instantly extracts the net price and the VAT amount — at the current UK standard rate of 20%, or any rate you set. It's built to avoid the single most common VAT error: subtracting a percentage instead of dividing.
The Mistake Almost Everyone Makes When Removing VAT
If you've ever taken a VAT-inclusive price and simply subtracted 20% to ‘remove the VAT’, the number you got was wrong — and it's wrong in a way that's easy to miss because it looks roughly right.
Why subtracting 20% doesn't work: VAT at 20% is calculated on the net price, not the gross price. That means the VAT portion of a gross, VAT-inclusive amount is actually one sixth of it — not one fifth (20%). Subtracting 20% of the gross figure removes too much.
Worked example: take a gross price of £600. Subtract 20% and you get £480 — which is wrong. The correct net price is £600 ÷ 1.20 = £500, with £100 being the VAT (one sixth of £600, not one fifth). The subtract-20% method understates the true net price by £20 on this example alone — multiply that error across every invoice in a quarter and it adds up fast.
How to Remove VAT: The Correct Formula
To remove VAT from a gross price, divide it by 1 plus the VAT rate (as a decimal). At the standard UK rate of 20%, that means dividing by 1.20.
Net price = Gross price ÷ (1 + VAT rate)
VAT amount = Gross price − Net price
Removing VAT at Every UK Rate
Here's how a £300 gross price breaks down once VAT is removed at each active UK rate:
| VAT Rate | Divisor | Gross | Net Price | VAT Removed |
|---|---|---|---|---|
| Standard – 20% | ÷ 1.20 | £300.00 | £250.00 | £50.00 |
| Reduced – 5% | ÷ 1.05 | £300.00 | £285.71 | £14.29 |
| Zero – 0% | ÷ 1.00 | £300.00 | £300.00 | £0.00 |
Common Scenarios for Removing VAT
Checking a Receipt or Supplier Invoice
You've been given a VAT-inclusive total of £89.99 for a purchase and need the net figure for your accounts. Enter £89.99, press Remove VAT, and you get the exact net cost and VAT amount to record — no manual division needed.
Reconciling Expenses
Many receipts show only the gross, VAT-inclusive total, with the VAT breakdown printed separately or not at all. Reversing the calculation lets you split any receipt into net and VAT for expense claims or bookkeeping, even when the VAT line isn't itemised.
Working Out What a Customer Actually Paid You (Excluding VAT)
If you've quoted or been paid a VAT-inclusive figure and need to know your actual net revenue — for example, to compare it against a net-priced quote from a competitor — removing VAT gives you the true, apples-to-apples comparison figure.
Frequently Asked Questions
How do I remove VAT from a price?
Divide the gross (VAT-inclusive) price by 1 plus the VAT rate as a decimal — at the standard UK rate, divide by 1.20. Enter the gross amount above and press ‘Remove VAT’ to get the result instantly.
How do I take VAT off a price?
Divide by 1.20 at the standard 20% rate — don't subtract 20%. For example, £120 ÷ 1.20 = £100 net, with £20 being the VAT.
Why can't I just subtract 20% to remove VAT?
Because VAT is calculated on the net price, not the gross price, so the VAT portion of a gross figure is actually one sixth of it at the 20% rate — not one fifth. Subtracting 20% of the gross overstates the VAT removed and understates the true net price.
What is a reverse VAT calculation?
A reverse VAT calculation is another name for removing VAT — extracting the net price and VAT amount from a gross, VAT-inclusive figure by dividing by 1 + the VAT rate.
How do I deduct VAT from a price at 5%?
Divide the gross price by 1.05. For example, £210 ÷ 1.05 = £200 net, with £10 being the VAT at the reduced rate.
How do I work out VAT on a receipt that doesn't show it separately?
If you know the total was VAT-inclusive at the standard rate, divide the total by 1.20 to get the net amount, then subtract that from the total to find the VAT — this calculator does both steps for you instantly.
Is the method different for removing VAT at a reduced or zero rate?
The method is the same — divide by 1 plus the rate — you just use a different divisor: 1.20 at standard rate, 1.05 at reduced rate, and 1.00 at zero rate (which leaves the price unchanged, since no VAT was added in the first place).
A Note on Accuracy
This calculator and the formulas above reflect the current UK standard, reduced and zero VAT rates. This page is for general guidance only and does not constitute tax advice — always confirm your specific VAT treatment with HMRC or a qualified accountant if you're unsure which rate applies.