How to calculate the price before VAT was added.

Calculator to remove VAT from a VAT inclusive price

In the UK the current Standard Rate of VAT is 20% and this is added to most items excluding Books, Food and Children’s Clothing. To work out the price of an item, where the price includes VAT, first make sure the item is subject to standard rate VAT.

The above VAT removal calculator simply divides the price you enter by 1.2 and displays the result.

What is the Nett Price or Nett Cost

The price before VAT is added is often referred to as the Nett cost or Nett Price. Many people mix up Price and Cost and use the terms to mean the same thing. Technically Nett Cost, is what is costs someone to produce or make available for sale and item. Nett Price is the price at which they are willing to sell it before VAT. The difference between Nett Price and Nett Cost is their profit margin.

What is the Gross Price

The Gross Price, should be the final price after all additions, including VAT (Value Added Tax)

How to calculate a price without VAT

As above, you need to be sure that the item includes VAT at the standard 20% rate. If it does you just need to divide the price by 1.20. Try it on a calculator and then cross check your answer using our online VAT Price Removal calculator above.

How to find the price before vat was added

Please see above. The calculator on this page will work out vat from gross