Remove VAT calculator
Find out how much VAT is inside a gross price and what the net amount is, without the common mistake of subtracting the percentage.
Remove VAT calculator: what it is and how it works
Removing VAT from a price, also called reverse VAT, means splitting a gross amount into two parts: the net amount, which is the actual price of the goods or service, and the VAT, which the seller pays over to the tax authority.
The most common mistake is to subtract the percentage directly from the total. If a receipt shows €120 including 20 % VAT and you take off 20 %, you get €96, which is wrong: the tax was calculated on the net price, not on the total. The correct method is to divide the total by 1.20. This calculator does it for you and is useful for checking invoices, claiming input VAT or comparing prices before tax.
How to use it
- Enter the gross amount, including VAT.
- Enter the VAT rate that was applied.
- Read the net amount and the VAT separately.
Net = Gross ÷ (1 + rate ÷ 100) · VAT = Gross − NetWorked example
An invoice of €240 including 20 % VAT has a net amount of 240 ÷ 1.20 = €200 and €40 of VAT.
Frequently asked questions
Why can’t I just subtract 20 % from the gross price?
Because the 20 % was calculated on the net price, which is smaller than the gross price. Subtracting 20 % from the total removes too much. You need to divide by 1.20.
How much VAT is in €100 including VAT?
At 20 %, the net amount is €83.33 and the VAT is €16.67. At 5 %, the net amount is €95.24 and the VAT is €4.76.
What is the VAT fraction?
At 20 %, VAT is one sixth of the gross price (20/120). Multiplying the gross amount by 1/6 gives the VAT directly.
What if the price includes other taxes?
This calculator removes a single VAT rate. If there are other taxes or surcharges, you need to deduct them separately.