Definition: Removing VAT from a price — also called a reverse VAT calculation — means working out the original price before VAT (the net price) from a total that already includes VAT (the gross price).
Example: a price of £240 including 20% VAT → £240 ÷ 1.2 = £200 net, and the VAT inside it is £240 − £200 = £40.
You can skip the maths with our free VAT calculator — enter the gross amount, choose the rate, and it shows the net and VAT split.
Enter an amount, pick a rate, and see the full breakdown instantly.
Need more options? Use the full UK VAT Calculator — it's free.
| VAT rate | To get the net price | VAT fraction (VAT inside the gross price) |
|---|---|---|
| 20% (standard) | Gross ÷ 1.2 | Gross × 1/6 |
| 5% (reduced) | Gross ÷ 1.05 | Gross × 1/21 |
| 0% (zero rate) | No change — net = gross | £0 |
Why divide? The gross price is the net price plus a percentage of the net price. So £200 net + 20% VAT (£40) = £240 gross. Dividing by 1.2 simply reverses that step. The VAT fraction works the same way: at 20%, the VAT inside any gross amount is always one sixth of it (20 ÷ 120).
A laptop is priced at £600 including VAT.
A domestic energy bill (outside the temporary zero-rate electricity measure) totals £210 including 5% VAT.
Note: qualifying domestic electricity in Great Britain is temporarily 0% from 1 October 2026 to 31 March 2027, so there is no VAT to remove from that part of a bill in that period — see our guide to VAT on domestic electricity bills. Northern Ireland electricity and domestic gas remain at 5%.
A tool costs £59.99 including 20% VAT.
Small rounding differences of a penny are normal — round the net to the nearest penny, then take the VAT as the difference so the two always add back to the gross price.
You are checking a supplier invoice with a total of £1,440 including 20% VAT before you reclaim the VAT.
Do not take 20% of the gross price and call that the VAT.
VAT is charged on the net price, not on the total. That is why removing it is a division, not a straight percentage of the amount you paid. Taking a percentage of the gross price always overstates the VAT.
How do I calculate VAT backwards from a total?
Divide the total by 1.2 for the 20% rate (or 1.05 for 5%). That gives the net amount; the difference between the total and the net is the VAT.
What is the VAT fraction for 20%?
One sixth (1/6). Multiply any VAT-inclusive amount at 20% by 1/6 to get the VAT it contains. For the 5% rate the fraction is 1/21.
Why isn't the VAT on £240 just £48?
Because VAT is added to the net price, not taken from the total. £240 is 120% of the net price (£200), and the VAT part is £40. 20% of the gross price (£48) would only be correct if VAT had been charged on the total itself.
Can I remove VAT if the receipt doesn't show the rate?
You need to know which rate applied. Most UK supplies are standard-rated at 20%, but some goods and services are 5% or 0%, and a few are exempt (no VAT at all). If the receipt is for your business, ask the supplier for a VAT invoice showing the rate and the VAT amount separately.
Is reverse VAT calculation the same as the VAT domestic reverse charge?
No. This guide is about the maths of taking VAT out of a price. The domestic reverse charge is a separate HMRC scheme for construction services where the customer, not the supplier, accounts for the VAT.
Try it now: enter a VAT-inclusive amount in our free UK VAT calculator to see the net price and VAT amount instantly.
Related guides: How to Calculate VAT at 5% (Reduced Rate) · VAT on Domestic Electricity Bills: 0% in Great Britain from October 2026