How to remove VAT from a price
Find the net price and VAT portion of a tax-inclusive total, check a worked example, and handle invoices with more than one VAT rate.
By ToolsNow · Published · updated
To remove 21% VAT from a €121 total, divide €121 by 1.21. The net price is €100 and the VAT is €21. Subtracting 21% from €121 gives €95.59, which is a discount on the total rather than the price before VAT.
You need two things before calculating: a price that already includes VAT, and the rate actually applied to that price.
Find the net amount, then the tax
“Net” means the price before VAT. “Gross” means the total including it. For any single VAT rate:
Net = Gross ÷ (1 + rate/100)
VAT = Gross − NetEnter the percentage as a number: for 21%, use 21 in this formula.
That makes the divisor 1 + 21/100, or 1.21.
| Rate applied | Divide the gross price by |
|---|---|
| 5% | 1.05 |
| 19% | 1.19 |
| 20% | 1.20 |
| 21% | 1.21 |
| 25% | 1.25 |
| 27% | 1.27 |
These are arithmetic examples, not a list of rates applicable to every purchase in a country. Reduced rates, zero rating and exemptions need their own treatment.
Why subtraction gives the wrong result
On a €100 net price, 21% VAT is €21. The gross price is therefore €121. The tax was calculated on €100, not on €121.
Subtracting 21% of the gross removes €25.41. That is €4.41 more than the tax originally added. Division reverses the multiplication used to add VAT; subtracting the percentage does not.
For a €1,000 gross price, the difference is:
| Rate | Correct net | Subtracting that % from gross | Net understated by |
|---|---|---|---|
| 19% | €840.34 | €810.00 | €30.34 |
| 20% | €833.33 | €800.00 | €33.33 |
| 21% | €826.45 | €790.00 | €36.45 |
| 25% | €800.00 | €750.00 | €50.00 |
| 27% | €787.40 | €730.00 | €57.40 |
Figures are rounded to cents. GOV.UK’s guidance on VAT-inclusive and exclusive prices uses the same divide-by-1.20 method for a price including 20% VAT.
Check the answer by adding VAT back
Multiply the net amount by the same factor:
Gross = Net × (1 + rate/100)
€100 × 1.21 = €121The net amount plus the VAT amount should also equal the gross. Keep unrounded values while calculating and round the final amounts according to the invoicing rules you use. Rounding each line separately can differ slightly from rounding a combined total.
Split an invoice that contains different rates
Do not remove one rate from an entire invoice if its lines have different rates. For example, €120 including 20% VAT gives €100 net and €20 VAT. Another €105 including 5% VAT gives €100 net and €5 VAT.
Together that is €225 gross, €200 net and €25 VAT. Dividing the whole €225 by 1.20 would give the wrong net total. Use the invoice’s rate breakdown, and keep exempt or zero-rated lines separate.
Use the calculator with the invoice rate
In the VAT calculator, choose Gross → Net (remove VAT), enter the gross price and check the rate. Country selection loads a stored standard rate; it does not determine which rate applies to your transaction. You can edit the rate for a reduced-rate calculation.
The current tool does not display a result for a 0% rate. The arithmetic at 0% is simply net equals gross and VAT equals zero; zero-rated and exempt transactions still have different tax meanings.
The country pages include Germany, the Netherlands and France. Use the invoice and applicable tax guidance to confirm the rate. Calculating the VAT portion alone does not establish whether it is reclaimable.
Last reviewed 2 October 2026.
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