Remove 20% VAT From a Price
Enter any gross (VAT-inclusive) amount and remove 20% VAT to see the net price and VAT component. Switch the calculator to 'Remove VAT' mode and enter your amount.
Quick answer: £120 including 20% VAT
Gross (inc. VAT)
£120.00
Net (ex. VAT)
£100.00
VAT (20%)
£20.00
For any other amount, use the calculator below (select Remove VAT mode).
Add or remove UK VAT at 20%, 5%, or zero rate — instantly shows net, VAT amount, and gross total.
After calculating, copy the result into your workflow instead of searching for the calculator again.
Calculate first, then reuse the result
After you calculate, UtilityPilot can turn the result into a clean note you can paste into your SOP, spreadsheet, CRM, Slack, Notion, checklist or email.
Plain-English result — paste into any tool
For internal process notes
For client-ready wording
For Notion, docs or wikis
Share the tool without your values
No sign-up · No stored inputs · Copied text does not include your entered values
Formula
Add VAT: Gross = Net × (1 + Rate ÷ 100)\nRemove VAT: Net = Gross ÷ (1 + Rate ÷ 100)
At 20%: Net × 1.20 = Gross; Gross ÷ 1.20 = Net. At 5%: Net × 1.05 = Gross; Gross ÷ 1.05 = Net. The VAT amount is always the difference between gross and net.
Worked Example
What is 100 plus VAT?
£100 net × 20% = £20.00 VAT → £120.00 gross
What is 165 plus VAT?
£165 net × 20% = £33.00 VAT → £198.00 gross
Adding VAT — B2B invoice:
A marketing agency quotes a client £4,500 net. The invoice must show the VAT-inclusive total.
£4,500 × 20% = £900.00 VAT → £5,400.00 gross
Removing VAT — retail receipt:
A business receipt shows £84.00 including 20% VAT. What is the net?
£84 ÷ 1.20 = £70.00 net • VAT = £14.00
Reduced rate (5%) — domestic energy:
A quarterly gas bill of £230 includes 5% VAT.
£230 ÷ 1.05 = £219.05 net • VAT (5%) = £10.95
Common Mistakes
- Subtracting 20% to remove VAT. £120 − 20% = £96, not £100. The correct method is £120 ÷ 1.20 = £100.
- Adding VAT twice. If a price is already VAT-inclusive, do not add VAT again. Use "Remove VAT" to verify first.
- Applying the wrong rate. Some goods qualify for the 5% reduced rate (domestic fuel, children's car seats) or 0% (most food, books).
Guide
How to Use
- 1
Select Add or Remove VAT
"Add VAT" for a net price that needs a gross total. "Remove VAT" to extract the net from a VAT-inclusive price.
- 2
Enter the amount
Type the price in pounds. The label shows which type you are entering.
- 3
Select the VAT rate
UK standard is 20%. Choose 5% for reduced rate goods, 0% for zero-rated, or enter a custom rate.
- 4
Review all three figures
Net, VAT amount, and gross are shown together. Copy them for invoices or records.
Next Steps
What to do next
FAQ
Frequently Asked Questions
Related by Workflow
Related by Region
How to remove 20% VAT correctly
The common mistake is to subtract 20% directly from the gross price. This is wrong because VAT is calculated on the net price, not the gross. The correct formula is:
Net price = Gross ÷ 1.20
VAT amount = Gross − Net
Wrong method
£120 × 20% = £24 subtracted → £96 net
This is incorrect.
Correct method
£120 ÷ 1.20 = £100 net → VAT = £20
This is correct.
Common remove-VAT examples at 20%
| Gross (inc. VAT) | Net (ex. VAT) | VAT (20%) |
|---|---|---|
| £60 | £50.00 | £10.00 |
| £120 | £100.00 | £20.00 |
| £240 | £200.00 | £40.00 |
| £600 | £500.00 | £100.00 |
| £1,200 | £1,000.00 | £200.00 |
Use this in your workflow
After calculating, use Copy result summary to paste the breakdown into your bookkeeping spreadsheet, expense claim, CRM, Slack, Notion or email. Save a consistent note your team can reference without recalculating.
Need to add 20% VAT instead? See Add 20% VAT to 100.
Working in another country? Use VAT Calculator Europe for 11 EU rates.
Common questions
How do I remove 20% VAT from a price?
Divide the gross price by 1.20. The result is the net (ex-VAT) price. Example: £120 ÷ 1.20 = £100 net. VAT amount = £120 − £100 = £20.
What is £120 minus 20% VAT?
£120 including 20% VAT breaks down as: Net £100 + VAT £20 = £120 gross. The net price is £100, not £96 — subtracting 20% directly gives the wrong answer.
Why can't I just subtract 20% to remove VAT?
Because VAT is calculated on the net price, not the gross. 20% of £120 is £24, but the actual VAT on £120 gross is only £20. The correct method is always to divide by 1.20.