VAT Gross to Net Calculator

How to Take VAT Out of a Gross Price

To remove VAT, divide the gross price by one plus the rate. The difference between the two figures is the VAT.

Net = Gross ÷ (1 + VAT rate) · VAT = Gross − Net

At 20%, £1,200 ÷ 1.20 = £1,000.00, so the VAT is £200.00. That is one sixth of the gross price, often called the VAT fraction: at 20% the VAT inside any inclusive price is gross ÷ 6. At 5% it is gross ÷ 21.

The common mistake is to take 20% off the gross price. £1,200 × 0.80 = £960.00, which understates the net amount by £40.00. The 20% applies to the net figure, not to the total.

Adding VAT to a Net Amount

Going the other way, multiply the net amount by one plus the rate.

Gross = Net × (1 + VAT rate)

A German supplier quoting €100 plus Mehrwertsteuer at 19% bills €119.00. Switch the calculator to "Excludes tax (net)" for quotes, price lists and supplier offers that state prices before VAT, which is common between businesses.

Consumer prices in the UK and the EU are shown with VAT included, so a shelf or menu price is a gross figure. Business price lists often show net prices. Check which one you have before you convert.

UK VAT Rates for 2026 with Examples

GOV.UK lists three UK rates: 20% standard, 5% reduced and 0% zero. The standard rate has been 20% since 4 January 2011.

• Standard rate 20%: most goods and services.
• Reduced rate 5%: some goods and services, for example children's car seats and home energy.
• Zero rate 0%: zero-rated items, for example most food and children's clothes.

For the reduced rate, choose "Custom rate" in the calculator and enter 5.

EU Standard VAT Rates by Country

Each EU country sets its own standard rate, which must be at least 15% under the VAT Directive. The table shows each 2026 standard rate and how a gross price of 1,000 in the local currency splits.

Finland uses a rate with a decimal, 25.5%, so a €1,000 price there holds €203.19 of VAT. Countries outside the euro area show their own currency: Czech koruna, Danish krone, Hungarian forint, Polish złoty, Romanian leu and Swedish krona.

Reading the VAT on an Invoice

A VAT invoice normally shows the net amount, the rate, the VAT and the total for each rate used. To check one, enter the total as a gross figure and compare the net and VAT lines.

1. Find the rate printed on the invoice.
2. Enter the total with "Includes tax (gross)" selected.
3. Compare the calculator's net and VAT with the invoice lines.

Small differences of a penny or a cent are normal, because billing software may round each line before adding them up. An invoice that mixes rates, such as standard-rated and zero-rated items, needs each group converted on its own.

VAT on Monthly, Quarterly and Yearly Sales

The same split works on totals. A UK shop taking £18,000 a month in standard-rated sales, VAT included, has £3,000.00 of output VAT in that month and £15,000.00 of net sales.

Output VAT is not all paid over: a registered business deducts the VAT it paid on its own purchases first. The calculator shows the VAT inside a figure, not the amount due on a return.

What Carries VAT and What Does Not

• Standard-rated supplies carry the full rate shown for the country.
• Reduced and super-reduced rates apply to listed goods and services, which differ by country (food, books, medicines, energy and public transport are frequent examples).
• Zero-rated supplies carry VAT at 0%: the seller charges no VAT but still treats the sale as taxable.
• Exempt supplies sit outside VAT altogether, so no VAT is charged and the seller cannot reclaim VAT on related costs.
• Sellers below the registration threshold do not charge VAT at all, so their prices are net and gross at once.

Assumptions and Sources

• Country choices use the standard rate only. Enter a reduced rate with "Custom rate".
• Results are exact divisions, not rounded per line as an invoice system may round them.
• Currency follows the country chosen; a custom rate shows plain numbers.
• The tool does not work out a VAT return, reverse charge or cross-border rules.

For prices in Australia, New Zealand, Canada, India or Singapore, use the GST Gross to Net Calculator. For a gross figure less any other percentage, try the Gross to Net Percentage Calculator.

Sources: European Commission, Your Europe VAT rates table (checked July 2026); Council Directive 2006/112/EC; GOV.UK VAT rates. Rates for 2026.

Frequently Asked Questions

How do I calculate net from gross with VAT?

Divide the gross figure by one plus the VAT rate. At 20%, £1,200 ÷ 1.2 = £1,000.00 net.

What is the UK VAT fraction?

At the 20% standard rate the VAT inside a gross price is one sixth of it. At the 5% reduced rate it is one twenty-first.

Why is taking 20% off a gross price wrong?

Because the rate is charged on the net price. £1,200 less 20% gives £960.00, while the true net is £1,000.00.

Which EU country has the highest VAT rate?

Hungary, at 27%. Luxembourg has the lowest standard rate at 17%.

Can I use this as a gross to net calculator for an invoice?

Yes. Enter the invoice total as a gross amount and choose the rate on the invoice. Split mixed-rate invoices by rate first.

Does zero-rated mean the same as exempt?

No. Zero-rated sales are taxable at 0%, so the seller can reclaim VAT on costs. Exempt sales are outside VAT and that reclaim is not allowed.