UK VAT — Reverse calculator
Remove VAT from a price
Enter a UK VAT-inclusive (gross) amount and the rate. We return the net price (excluding VAT) and the VAT amount, rounded to the penny. Same engine as the full VATLY calculator — just framed for one direction.
Worked examples
| Gross | Rate | Net | VAT |
|---|---|---|---|
| £120.00 | 20% | £100.00 | £20.00 |
| £1,200.00 | 20% | £1,000.00 | £200.00 |
| £10,500.00 | 5% | £10,000.00 | £500.00 |
| £999.99 | 20% | £833.33 | £166.66 |
The £999.99 example shows the integer-pence behaviour: 999.99 ÷ 1.20 = 833.325 → banker's rounding to £833.33; VAT = 999.99 − 833.33 = 166.66.
Frequently asked questions
How do you remove VAT from a price?
Divide the gross (VAT-inclusive) amount by 1.20 to get the net amount at the 20% standard rate. The VAT amount is gross minus net. For the 5% reduced rate, divide by 1.05 instead. For 0% or exempt items, the gross is already the net.
Why does my answer differ by 1 penny from another calculator?
VAT rounding rules let HMRC accept either round-half-up or banker's rounding (round-half-to-even). The difference is at most one penny on any single calculation. VATLY uses banker's rounding by default — it's the convention HMRC use in their own published examples.
What's the formula for removing VAT?
net = gross ÷ (1 + rate). For the standard 20% rate: net = gross ÷ 1.20. For the 5% reduced rate: net = gross ÷ 1.05. VAT = gross − net.
Is the VAT-removal calculation the same as a reverse VAT calculation?
Yes — "reverse VAT" usually means going from a gross (VAT-inclusive) figure back to its net (VAT-exclusive) component and the VAT amount. That's exactly what this page does.
Does this work for the Flat Rate Scheme?
No — Flat Rate VAT is calculated on gross turnover at a sector-specific rate, not by dividing by 1.20. Use our scheme comparison page to see how the two methods differ for the same business.
Other VAT tools
- Full UK VAT calculator — Standard + Flat Rate Scheme, threshold check, Save-to-VATLY
- VAT scheme comparison — Standard vs Flat Rate vs Cash Accounting side-by-side
- UK VAT rates — the full list of standard, reduced, zero and exempt rates
- VAT registration threshold — when you must register