How do I extract 20% VAT from a total price?

Divide the total by 1.20 to get the net amount, then subtract the net from the total. For example: $240 / 1.20 = $200 net, so VAT = $40. A shortcut: divide the total by 6.

Why would I need a reverse VAT calculation?

Reverse VAT calculation is needed when you have a VAT-inclusive receipt and need to determine the tax component for accounting, expense claims, or VAT return filing.

Reverse VAT Calculator | Extract VAT from Total Price

To extract VAT from a gross (VAT-inclusive) price, use the formula: VAT Amount = Gross Price - (Gross Price / (1 + VAT Rate)). For example, with a 20% VAT rate and a gross price of $120: Net = $120 / 1.20 = $100, and the VAT amount is $20. A quick shortcut for 20% VAT: divide the gross amount by 6 to get the VAT. For 25% VAT, divide by 5. This reverse calculation is essential when you receive invoices or receipts showing only the total and need to determine how much tax is included.

Reverse VAT Calculator — Extract VAT from Total

How to Calculate VAT Backwards from a Gross Price

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