Accurately extract VAT from gross amounts in seconds. Designed for UK businesses and freelancers.
CALCULATOR DETAILS
Calculation Summary
Net Amount
0.00
Excluding Tax
VAT Amount
0.00
Tax Portion
A simple breakdown of the math used to separate tax from your total.
Confirm the VAT percentage applied. For most UK goods, this is 20%.
Divide your gross amount by 1.20 (1 + Rate/100).
The answer is your Net Amount. The rest is the tax you pay.
Normally, when you buy goods or services, you pay VAT to the supplier, and they pay it to HMRC. Reverse Charge VAT flips this process. Instead of paying VAT to the supplier, you (the buyer) account for the VAT on your own VAT return. You effectively charge yourself VAT and then reclaim it in the same return (assuming you are fully taxable), making it a cash-neutral transaction.
A Reverse VAT Calculator is an essential tool for instantly determining the Net (pre-tax) amount from a Gross (total) figure. This is particularly useful when:
In the UK, the VAT domestic reverse charge for building and construction services prevents "missing trader" fraud. If you buy construction services that are reported under the Construction Industry Scheme (CIS), you generally do not pay VAT to the sub-contractor. Instead, you declare the VAT as output tax on your own return. Our calculator helps you quickly identify the specific VAT portion that needs to be withheld and reported.
"Accuracy is key in accounting. Manually dividing by 1.2 is easy, but using a tool ensures you don't make rounding errors when dealing with large volumes of invoices."
To calculate the Net amount from the Gross, divide the Gross by 1 + (VAT Rate / 100). For UK standard rate (20%), divide by 1.20.
It is essential when you have a total price (Gross) but need to record the pre-tax price (Net) and the VAT amount separately for tax returns or accounting software.
Yes. If you are a contractor receiving a service under the Domestic Reverse Charge, you can use this tool to calculate the VAT amount you need to pay to HMRC instead of to the sub-contractor.
Yes! While this page defaults to UK 20%, you can use the region switcher in the top right menu to select Germany, France, Italy, and more, or manually enter any custom rate.
No. The Net Amount is simply the price of the goods before tax. Profit is what remains after you subtract your costs (materials, labor, overheads) from that Net Amount.