## HOW TO USE THE REVERSE VAT CALCULATOR

Type in your **Gross Amount** and we will automatically remove the VAT at the standard rate of 20%

The **VAT Amount Removed **line shows how much VAT has been removed from the Gross Amount. The **Net Amount** is the Gross Amount minus the VAT Amount Removed.

## How To Reverse VAT

Reversing VAT or removing the VAT is slightly different to adding VAT. Simply just dividing 1.2 (20%) or 1.05 (5%) will not give you the VAT amount, but the Net amount.

To calculate the VAT amount you have to divided the gross amount by 1+ VAT percentage example, **1.2** (20%) or **1.05** (5%), then subtract that from the starting gross amount.

**Example:**

£100.00 divided by 1.20 = £83.33 – This is the Net Amount

Subtract £83.33 from £100.00 **(100 – 83.33)** = £16.67 – this is the VAT Amount on an item sold for £100.00

To reverse VAT at any other rate simply change the 1.20, for example, 1.27 is 27%, 1.08 is 8%