How to remove VAT from a total
A VAT-inclusive total cannot be converted to net by simply subtracting the VAT percentage. The tax was calculated from the smaller net amount, so the correct method is to divide the gross total by one plus the VAT rate as a decimal.
Net price = Gross price ÷ (1 + VAT rate ÷ 100)
Worked examples
At 20% VAT, a gross price of 120 contains 20 VAT and has a net price of 100. At 21%, a gross total of 121 contains 21 VAT and has a net value of 100.
Using a custom VAT percentage
You can type any VAT rate into the calculator, including decimal percentages such as 5.5%, 13.5% or 25.5%. Country presets are provided for convenience, but the applicable rate depends on the transaction.
VAT rules can vary by product, service and region. Verify the applicable rate with the relevant tax authority when the calculation is used for tax reporting, invoicing or compliance.