United Kingdom Reverse VAT Calculator
UK shelf prices usually include 20% standard VAT. Divide by 1.20 to get the net amount before VAT for invoices, expenses, and B2B comparisons.
Enter the total you paid (VAT included) and your rate.
Step 2 — Your breakdown
We reverse the tax using the standard formula:
Enter a total and tax rate to see your breakdown.
HMRC sets 20% as the default on most goods and services. A £120 till total is £100 net plus £20 VAT when the standard rate applied.
Reduced 5% and zero rates cover qualifying energy, food, and children's items—use the rate printed on your receipt, not a blanket 20%.
Registered businesses show VAT separately on many B2B invoices; consumers often see one VAT-inclusive figure. Amazon UK and Shopify UK settlements need per-order rate splits.
Northern Ireland and EU cross-border rules differ—follow the VAT rate on the document for that supply.
London fintech and Manchester ecommerce teams reverse VAT on tax-inclusive SaaS and marketplace gross deposits before quarterly HMRC reconciliation.
VAT-registered businesses must keep digital records linking tax-inclusive receipts to net and VAT components. Reverse calculation validates POS totals against Making Tax Digital submissions before HMRC review.
Mixed-rate supermarket baskets combine 0%, 5%, and 20% lines—split each taxed subtotal before applying one divisor to the entire till total on weekly expense reports.
Net = gross ÷ (1 + rate/100). At 20%: £240 ÷ 1.20 = £200 net.
Construction reverse charge and certain B2B services may show no VAT on your invoice—you self-account separately rather than reverse from a gross total.
| Rate | Category | Examples |
|---|---|---|
| 20% standard VAT | Standard VAT | Standard UK VAT on most goods and services. |
| Reduced | Lower VAT tiers | Many EU countries apply reduced VAT on food, books, or hospitality — use your invoice rate. |
| Zero | Zero-rated supplies | Exports and certain essentials may be zero-rated; confirm on your document. |
£240 inclusive at 20% VAT.
Net £200 | VAT £40 | Total £240
VAT-registered businesses file with HMRC. Confirm Making Tax Digital rules and reduced-rate categories with an adviser. Keep digital links between tax-inclusive receipts and net/VAT splits for quarterly VAT return reconciliation.
20% on most taxable supplies.
£120 ÷ 1.20 = £100 net.
No—5% and 0% apply to specific categories.
UK has its own VAT system after Brexit; rates differ by country.
Follow the VAT rate on your document—NI trade rules differ from Great Britain for some supplies.
