Remove VAT

VAT: UK (Europe)

Price excl. VAT:: £0.00
VAT 20%: £0.00
Total incl. VAT:: £0.00

How to calculate a price without VAT?

If you want to know how much a product or service costs without tax, you can calculate this as well. There is a way to calculate the taxable amount by removing VAT. We will continue using the same example to illustrate how to do this.

You have to divide the total amount that will be charged to the end consumer by the Value-Added Tax percentage. If the total cost of the product is £228.00 and the tax rate is 20%, the formula is like this:

Taxable amount = Total amount ÷ VAT (20%) = £228.00 ÷ 1.2 = £190.00

To verify that this is the correct result, you can use the following operation:

VAT (20%) = £190.00 x 0.2 = £38.00

Total amount with VAT = £38.00 + £190.00 = £228.00

How to calculate the taxable amount with just VAT

On the other hand, if you only have the total cost of the tax, you need to use a different formula to figure out the taxable amount. You simply have to divide the amount of tax by 0.2, which is the tax rate to be charged.

In other words, if the amount of VAT for the hay is £38.00 – according to the applied tax – you have to divide that by 0.2, which gives you the taxable amount.

You can see this in the following formula:

Taxable amount = VAT amount ÷ VAT (20%) = £38.00 ÷ 0.2 = £190.00

This means that the selling price of hay without VAT is £190.00. You can verify that this result is accurate by using the following formula:

Total amount with VAT = £190.00 + £38.00 = £228.00

Check VAT rates on the official website