How to remove the VAT amount...

[Ashley_Price]

Hi All

I'm sure this has been asked before, but what's the formula for removing VAT from an amount?

So £100 x 20% is £120. But if I had £120 and wanted to know what the total was minus 20%, how do I work it out?

You cannot simply do £120-20% because 20% of £120 is £24 - which means £120-24 = £96, which of course isn't correct.

Help...

 

[RHardy]

The way I know is to divide the VAT inclusive amount by 1.2 - eg 120/1.2=100.

 

[red-source]

Hi Ashley

Simple way of doing it by division. Takes your £100 and divide by 1.2, this should give you your pre tax amount of 83.33333

 

[Ashley_Price]

Thanks for that. Is it always 1.2, what happens if/when VAT changes?

 

[RHardy]

Hi Ashley

If the VAT rate changes, the fraction changes. If VAT were 25% you would divide by 1.25 and so on.

 

[Ashley_Price]

You see - this is why this forum is so great. Ask a question and get an answer in minutes!

 

[TPS Test]

Alternatively, try this :-

http://www.vatcalculator.org.uk/

 

[Chris Ashdown]

The way for any amount is say vat is 16% and the item cost £150 Inc Vat

Then £150 divided by 116 (100 +vat) then multiply by 100

150/116 the *100= £129.31

 

[David Griffiths]

Basically if the VAT rate is x% the formula for finding the net goods value is

Selling price x 100 / 100+x


So at 20% its 100/120 (or 5/6)
at 25% it would be 100/125 (or 4/5)
at 17.5% it was 100/117.5 (or 40/47)