Question 1

How do I remove VAT from a price in the UK?

Accepted Answer

The UK standard VAT rate is 20%. To remove VAT: divide the VAT-inclusive price by 1.20. Example: £120.00 / 1.20 = £100.00 ex-VAT price. The VAT amount is £20.00.

Question 2

What is the reverse VAT formula?

Accepted Answer

The reverse VAT formula is identical to reverse sales tax: Net Price = Gross Price divided by (1 + VAT Rate / 100). For UK 20% VAT: Net = Gross / 1.20. For Germany 19%: Net = Gross / 1.19.

Question 3

What are the standard VAT rates in the EU?

Accepted Answer

Standard EU VAT rates vary by country: Germany 19%, France 20%, Italy 22%, Spain 21%, Netherlands 21%, Sweden 25%, Poland 23%, and Belgium 21%. Most EU countries also have reduced rates of 5-10% for essentials like food and books.

Question 4

How do I calculate the ex-VAT price from a gross amount?

Accepted Answer

Divide the gross VAT-inclusive amount by 1 plus the decimal VAT rate. For 20% VAT: divide by 1.20. For 19% VAT: divide by 1.19. For 10% VAT (Australia GST): divide by 1.10. The result is the net ex-VAT price.

Question 5

What is the difference between VAT and US sales tax for reverse calculations?

Accepted Answer

For reverse calculation purposes the formula is identical: Net Price = Gross Price divided by (1 + rate/100). The difference is structural — VAT is collected at each stage of the supply chain, while US sales tax is only collected at the final point of sale. The reverse math does not change.

Question 6

How do I remove Australian GST from a price?

Accepted Answer

Australia's GST rate is 10%. Divide the GST-inclusive total by 1.10 to find the pre-GST price. Example: $110.00 / 1.10 = $100.00. The GST component is $10.00.

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