STEP-BY-STEP WORKFLOW
How to Calculate VAT Backwards
Separate VAT from a tax-inclusive price, verify the percentage and keep margin calculations distinct.
Last reviewed
- Steps
- 3
- Estimated time
- 6-9 minutes
- Processing
- Local browser
- 01
Confirm the rate and remove VAT from gross price
Verify the applicable jurisdictional rate, choose Remove VAT, and divide the gross price by one plus the rate. Example: 120 at 20% becomes 100 net and 20 VAT.
Open VAT Calculator - 02
Check a percentage separately
Use the percentage calculator to verify a tax share or another percentage without changing the VAT result.
Open Percentage - 03
Keep profit calculations separate
If you are pricing a product, calculate margin from the appropriate net cost and selling price rather than the VAT amount.
Open Margin Calculator