Reverse Vat Calculator

Our Reverse VAT calculator can help to get accurate vat results for people in the UK and other regions. It helps businesses and individuals work backward from a gross (including VAT) amount to find the net (before VAT) amount and the exact VAT amount included. Here’s key points why it is important:

  • Transparency in Financial Reporting
  • Pricing Accuracy
  • Simplifies Billing and Invoicing
  • Efficient Tax Deduction Calculations
  • Assists Non-VAT Registered Individuals and Businesses
  • Saves Time and Reduces Errors

How to Use This Vat Calculator?

Here’s a step-by-step guide on how to use the Reverse VAT calculator:

1. Enter the Amount: In the calculator, you’ll see an input field where you can enter the amount.

If you want to calculate VAT based on a net amount (before VAT), enter the net amount in the input field.

If you want to calculate VAT based on a gross amount (including VAT), enter the gross amount in the input field.

2. Adjust the VAT Rate: The calculator will display a VAT rate slider by default set to 20%. You can adjust the VAT rate by moving the slider left or right. The range for the VAT rate is 7.5% to 25%. You can set it anywhere between those values. As you move the slider, the VAT rate value will update on the screen, showing the percentage you’ve selected.

3. Choose Add or Remove VAT: After entering the amount and adjusting the VAT rate, you’ll need to choose whether you want to do. Do you want to Add VAT to the net amount? or Remove VAT from the gross amount?

4. View Results: Once you click either the Add VAT or Remove VAT button, the results will be displayed:

  • Net Amount: The amount before VAT (entered by the user or calculated).
  • VAT Amount: The VAT value based on the VAT rate (calculated by the tool).
  • Gross Amount: The total amount after VAT is added (or the gross amount before VAT is removed).
  • Calculation Based on: The amount used for the calculation (either net or gross, depending on the operation chosen).

5. Calculate Again: Once you have the results, you can click the “Calculate Again” button to reset the calculator and perform a new calculation.

How This Vat Calculator Work?

The Reverse VAT calculator works based on a few key formulas to either add VAT to a net amount or remove VAT from a gross amount. Here’s a breakdown of how it works:

  • Net Amount: The original price before VAT is added.
  • Gross Amount: The price after VAT is added.
  • VAT Amount: The value of the VAT added to the net amount.
  • VAT Rate: The percentage rate of VAT applied (e.g., 20%).

Adding VAT (Net to Gross)

When you want to add VAT to a net amount (e.g., a base price before VAT is added), the formula used is:

Add vat UK

  • Net Amount is the amount before VAT (input by the user).
  • VAT Rate is the VAT percentage (e.g., 20% or 0.20).
  • The Gross Amount is the total price after adding VAT.

Example

  • Net Amount: £100
  • VAT Rate: 20% (0.20)

Using the formula:

Gross Amount = 100 x (1+0.20) = 100 x 1.20 = £120

So, the Gross Amount is £120, and the VAT Amount is £20 (£120 – £100).

Removing VAT (Gross to Net)

When you want to remove VAT from a gross amount (e.g., to find out the original price before VAT was added), the formula used is:

Removing vat

  • Gross Amount is the total price including VAT (input by the user).
  • VAT Rate is the VAT percentage (e.g., 20% or 0.20).
  • The Net Amount is the original price before VAT.

Example:

  • Gross Amount: £120
  • VAT Rate: 20% (0.20)

Using the formula:

Removing vat formula

So, the Net Amount is £100, and the VAT Amount is £20 (£120 – £100).