luckpandaHow to use the reverse VAT calculator
- Enter the price including VAT.
- Pick the VAT rate that was charged.
- Read the net amount and the VAT inside the price.
Reverse VAT, worked through
A supplier's receipt shows £372.00 including 20% VAT. Net = £372.00 ÷ 1.2 = £310.00. VAT = £372.00 − £310.00 = £62.00, which is also £372.00 ÷ 6.
| Gross | Rate | VAT fraction | VAT | Net |
|---|---|---|---|---|
| £120.00 | 20% | 1/6 | £20.00 | £100.00 |
| £372.00 | 20% | 1/6 | £62.00 | £310.00 |
| £105.00 | 5% | 1/21 | £5.00 | £100.00 |
| £119.00 | 19% (DE) | 19/119 | £19.00 | £100.00 |
When you need the net price
Reclaiming input VAT on purchases, recording expenses in your books net of VAT, or quoting a client a net price when you only know what they will pay all start from the gross figure. Your VAT return shows net sales and VAT separately, so every gross amount has to be split this way.