VAT Fundamentals
A timeless guide to adding and removing VAT with editable rates, written to stay useful as a formula reference rather than a fixed legal statement about any one tax regime.
Enter a VAT-inclusive amount and the rate you want to remove. The VAT rate remains fully editable and is not treated as a permanent legal truth.
Inputs
This topic also has a deeper guide and a printable reference pack, so you can move from the live answer into the method, assumptions, and worked examples without leaving the topic cluster.
These are the main values the calculator uses. Keep the units consistent and, where relevant, match the assumptions explained in the related guide.
Unit: GBP
Enter the VAT-inclusive amount before tax is removed.
Unit: %
Use the VAT rate that matches the case you are checking rather than relying on a fixed assumption.
Use this page when you have a VAT-inclusive amount and need to work back to the underlying net price with a rate you control yourself.
The main result is the estimated net amount. Supporting figures show the VAT portion that was removed from the gross value.
If a gross amount is 120 and the VAT rate is 20%, the calculator backs out a net amount of 100 and shows the 20 VAT component separately.
This calculator only applies the rate entered on the page. It does not determine the correct legal treatment for a specific sale, invoice, or jurisdiction.
Yes. The rate is intentionally editable so the tool can stay accurate for different scenarios and future changes.
Add VAT to a net amount using an editable rate that you control rather than a hardcoded tax assumption.
Use the Discount Calculator to work out discount from values you control yourself, without baked-in policy assumptions.
Use the Markup Calculator to work out markup from values you control yourself, without baked-in policy assumptions.
Work out gross profit, profit margin, and markup from the selling price and cost you enter.