Reverse VAT Calculator
Enter any VAT-inclusive (gross) amount and extract the net price and VAT component. Switch the calculator to 'Remove VAT' mode, enter your gross amount, and select the VAT rate.
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
Reverse VAT formulas
20% VAT
Net = Gross ÷ 1.20
£120 ÷ 1.20 = £100
5% VAT
Net = Gross ÷ 1.05
£105 ÷ 1.05 = £100
Custom rate R%
Net = Gross ÷ (1 + R/100)
Works for any rate
When to use reverse VAT
- Reclaiming input VAT from expense receipts showing gross amounts
- Coding supplier invoices that only show the VAT-inclusive total
- Reporting net revenue when prices were quoted inclusive of VAT
- Checking that a VAT invoice has been calculated correctly
- Converting retail (consumer) prices to trade (ex-VAT) prices
Use this in your workflow
Copy the net price and VAT breakdown into your bookkeeping spreadsheet, expense claim, CRM, Slack or email using the Copy result summary button. Paste once into a template and reuse.
Common questions
What is a reverse VAT calculation?
Reverse VAT (also called "backing out VAT" or "extracting VAT") means finding the net price and VAT amount from a gross VAT-inclusive price. For 20% VAT: net = gross ÷ 1.20. For 5% VAT: net = gross ÷ 1.05.
Why is reverse VAT used?
Reverse VAT is used when you have a receipt or invoice showing a VAT-inclusive total but need the net amount for accounting — for example, to reclaim VAT, code expenses, or report net revenue.
Does the reverse VAT formula change for different rates?
Yes. For 20% VAT: net = gross ÷ 1.20. For 5% VAT: net = gross ÷ 1.05. For any rate R%: net = gross ÷ (1 + R/100). The VAT amount is always gross minus net.