VAT Reverse Calculator
Add VAT to a net price or remove VAT from a gross price. Choose UK rates, any of the 27 EU country rates, or enter a custom rate. Batch mode processes a list of prices at once. Nothing uploaded.
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Learn more: VAT, reverse charges, and tax compliance
Why VAT removal matters and how it works
VAT (Value Added Tax) is added on top of a gross price. If a product costs £100 and VAT is 20 percent, you pay £120 total (£100 base plus £20 tax). Removing VAT means calculating backwards: if you paid £120 including tax, you divide by 1.20 to find the pre-tax amount (£100). This is essential for accountants reconciling invoices, businesses calculating profit margins on VAT-inclusive prices, and anyone verifying whether a quoted price is fair.
VAT rates vary by country and product type
Standard VAT rates range from 15 percent in some EU countries to 27 percent in Hungary. Many countries have reduced rates (5-10 percent) for essentials like food and books. Digital services may be taxed at the destination country's rate if sold to consumers. The calculator shows the most common rates (standard, reduced, super-reduced, and zero) for your selected country so you can quickly identify which rate applies.
Understanding reverse charges and B2B VAT
In B2B (business-to-business) transactions within the EU, VAT operates under reverse charge: the supplier does not charge VAT, and the buyer must self-assess VAT in their own country. This complicates invoicing and accounting - a £100 B2B invoice stays £100 (no VAT added), but the buyer must account for VAT in their own books.
FAQ
How do I remove VAT from a price?
Divide the total price (including VAT) by 1 plus the VAT rate (as a decimal). For 20 percent VAT, divide by 1.20. For example, £120 with 20 percent VAT becomes £100 net (£120 divided by 1.20). The VAT amount is the difference: £120 minus £100 equals £20.
What is the difference between net and gross price?
Net price is the pre-tax amount. Gross price is the total including VAT. A £100 net price with 20 percent VAT becomes £120 gross. If you know the gross price and need the net, you reverse the calculation.
Why do VAT rates differ between countries?
Each country sets its own VAT rates as part of fiscal policy. Standard rates range from 15 to 27 percent. Many countries offer reduced rates (5-10 percent) for essentials like food. Digital services have special rules for cross-border transactions.