Remove VAT from a price with VAT included
- Price excl. VAT:
- £0.00
- VAT 20%
- £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
1.2
=
Result price without VAT
Example to remove VAT at 20%
In this case, the £240 of the total product price would be divided by 1.2. Giving the following result:
X
=
£240
1.2
=
£200
Summary of operations for VAT at 20%
In summary, if you have an VAT of 20%, these are the operations to perform:
- £200 × 0.2 = £40 (To calculate VAT on prices that do not have it)
- £200 × 1.2 = £240 (To calculate the total price with VAT included)
- £240 ÷ 1.2 = £200 (To calculate the price without VAT)