VAT task guide
Remove VAT from Price
Use this page when a total already includes VAT and you need to find the price before VAT. Enter the VAT-inclusive total and the exact VAT rate from your invoice or country page.
At 20% tax, £120.00 gross equals £100.00 before tax and £20.00 tax. View formula
Formula
Pre-VAT price = VAT-inclusive price / (1 + VAT rate / 100).
Example
If the total is 120 and VAT is 20%, the pre-VAT price is 100 and the VAT amount is 20.
Common mistake
Do not subtract 20% directly from the total. A VAT-inclusive total must be divided, not discounted.
FAQ
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1 plus the VAT rate divided by 100. For example, 120 at 20% VAT becomes 100 before VAT.
Can I use this for reduced VAT rates?
Yes. Enter the reduced VAT rate manually when the product or service does not use the standard rate.
Is removing VAT the same as subtracting the VAT rate?
No. You should divide by 1 plus the VAT rate. Subtracting 20% from a VAT-inclusive total gives the wrong pre-tax price.