A backwards VAT calculator helps you work out VAT backwards from a VAT-inclusive price, showing both the VAT amount and the original price before VAT.
If you need to calculate VAT backwards, you can work from the VAT-inclusive total to find both the original price and the VAT amount. This is useful when checking invoices, expenses or prices where VAT is already included.
You can also use a VAT calculator to quickly add or remove VAT from any amount without doing the calculation manually.
Reverse VAT Calculator
What Is a Backwards VAT Calculator?
VAT backwards, also known as reverse VAT calculation, means working backwards from a VAT-inclusive price to find the VAT amount and the original price before VAT.
It is often used when the VAT is not shown separately.
Why Use Reverse VAT Calculation?
You may need to calculate VAT in reverse when:
- Reviewing invoices
- Checking business expenses
- Verifying VAT amounts
- Preparing VAT returns
It helps ensure accuracy in your records.
How to Find the Original Price (Excluding VAT)
To find the original price before VAT, divide the total price by 1.20.
Example:
£120 ÷ 1.20 = £100
How to Find the VAT Amount from a Total
To calculate the VAT portion, subtract the net price from the total price.
Example:
Total price: £120
Net price: £100
VAT = £20
How to Calculate VAT Backwards Quickly
To calculate VAT backwards quickly at the standard 20% VAT rate, divide the VAT-inclusive total by 6 to find the VAT amount.
Example:
£120 × 1/6 = £20 VAT
Backwards VAT Calculation Examples
Example 1:
£240 ÷ 1.20 = £200 (net)
VAT = £40
Example 2:
£60 ÷ 1.20 = £50 (net)
VAT = £10
How to Work Out VAT Backwards Step by Step
To work out VAT backwards or reverse calculate VAT from a VAT-inclusive price, follow these four steps:
- Identify the VAT-inclusive price
- Divide by 1.20 to find the net price
- Subtract to find the VAT amount
- Double-check your results
Tip: For 20% VAT, using the 1/6 method is the quickest way to find the VAT amount.
Common Reverse VAT Mistakes
When calculating VAT backwards, some common mistakes include:
- Dividing by the wrong number
- Forgetting the VAT rate
- Confusing net and total prices
Using the correct formula avoids these errors.
Use a Reverse VAT Calculator Instead
Instead of calculating manually, you can use a VAT calculator to instantly find VAT from any total.
This saves time and reduces the risk of mistakes.
Reverse VAT FAQs
How do I calculate VAT from a total price?
To calculate VAT backwards at 20%, divide the VAT-inclusive total by 1.20 to find the original net price, then subtract the net price from the total to find the VAT amount.
What is the quickest way to find VAT?
Multiply the total by 1/6 for 20% VAT.
Can I use this method for different VAT rates?
Yes, but you must adjust the formula accordingly.
Disclaimer
This guide is for general information only. While every effort is made to ensure accuracy, we are an independent resource and not affiliated with HMRC. Always consult a qualified professional for financial decisions.