Remove VAT from a price with VAT included

Remove VAT from a price with VAT included

Price excl. VAT:
$0.00
VAT 12.5%
$0.00
Total incl. VAT:
$0.00

How to remove VAT from a price with VAT included?

This guide explains how to remove VAT from a final price and how to check the result using the calculator.

How to find out the price without VAT of a product

The opposite situation may also arise, where you want to remove VAT from a price. This happens when the price tag gives one, but with the comment that VAT is included. Knowing the net price of the product could be a perfectly valid question to have.

Formula to remove VAT from a final price

This can be answered by applying the formula:

X
=
Price with VAT
1.13
=
Result price without VAT

Example to remove VAT at 12.5%

In this case, the $450 of the total product price would be divided by 1.13. Giving the following result:

X
=
$450
1.13
=
$400

Summary of operations for VAT at 12.5%

In summary, if you have an VAT of 12.5%, these are the operations to perform:

  • $400 × 0.13 = $50 (To calculate VAT on prices that do not have it)
  • $400 × 1.13 = $450 (To calculate the total price with VAT included)
  • $450 ÷ 1.13 = $400 (To calculate the price without VAT)