Reverse VAT Calculator
The VAT inside a gross price, done correctly.
Rates change with budgets and local ballot measures, and the rate that applies depends on the delivery address and product category. Treat these as planning figures, not as a filing.
Net of VAT
$100.00
$20.00 of VAT inside the price
At 20% the VAT fraction of a gross price is 20/120, which is 16.67%. Multiplying the gross by 20% gives $24.00 — overstated by $4.00, and wrong in the same direction on every invoice you process.
How the Reverse VAT Calculator works
Removing VAT from a price is division, not subtraction of a percentage. The VAT fraction at 20% is 20/120 — one sixth, or 16.67% of the gross — because the 20% was applied to the net. Multiplying the gross by 20% overstates the VAT by exactly a fifth every time.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the VAT fraction at 20%?
One sixth, or 16.667% of the gross price. So £120 gross contains £20 of VAT and £100 net. Multiplying £120 by 20% gives £24, which is £4 too much.
What about the 5% reduced rate?
The fraction is 5/105, which is 4.762% of the gross. A £105 gross price contains £5 of VAT.
Why does the shortcut feel right?
Because at small rates the two answers are close. At 5% the error is a quarter of a percent; at 20% it is over three percent of the total. The intuition scales badly, which is why it survives.
Where does this matter most?
Reconciling marketplace payouts, expense claims, and any accounting where the only figure you have is the gross. Getting it wrong understates net revenue consistently, so the error never averages out.