How do I remove VAT from a price?
Extract the net price and included VAT from a gross amount without making the common percentage-subtraction mistake.
Divide the VAT-inclusive total by 1 plus the VAT rate. For example, remove 20% VAT from 120 by calculating 120 ÷ 1.20 = 100 net; the included VAT is 20.
VAT Calculator — Add or Remove VAT
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Use a reduced or custom VAT rateOptional
Currency-neutral result. Presets are a starting reference; reduced, zero and exempt rates depend on the transaction.
Why this answer depends on your details
Subtracting 20% from a gross amount does not reverse 20% VAT because the original percentage was applied to the smaller net amount. The divisor method recovers the correct tax base.
How to work through it
- Confirm that the entered amount already includes VAT.
- Choose the applicable country or enter the verified VAT rate.
- Select Remove included VAT.
- Divide the gross amount by 1 plus the decimal rate.
- Subtract net from gross to show the included VAT separately.
Common mistakes
- Multiplying the gross amount by 20% and subtracting it.
- Using a standard rate when the product has a reduced, zero, or exempt treatment.
- Confusing reverse calculation with the VAT reverse-charge rule.
- Using a country preset before confirming the place of supply.
Frequently asked questions
Why is 20% of 120 not the VAT included in 120?
Because 120 is 100 net plus 20 VAT. Multiplying the larger gross amount by 20% produces 24 and does not reverse the original calculation.
Can I use the same formula for any VAT rate?
Yes for the arithmetic: divide gross by 1 plus the rate in decimal form. You still need to verify which rate and treatment apply to the transaction.