Reverse VAT calculator: gross to net
Short intro: Use this page to remove VAT from a VAT-inclusive price. It is the everyday case where you have the gross amount and need the net amount and VAT, because apparently numbers enjoy wearing disguises.
What reverse VAT calculation is for
Reverse VAT calculation starts from the final price and works back to the taxable amount. You do not simply subtract 22% from the gross amount, because VAT is calculated on the net price, not on the gross price.
Formula
Net price = Gross price / (1 + VAT rate / 100)VAT amount = Gross price - Net priceGross price = Net price + VAT amount
How to use a reverse VAT calculator
Enter the VAT-inclusive amount, choose the rate and read the net price and VAT amount separately. Example: with a gross price of €122.00 and 22% VAT, the net price is €100.00 and VAT is €22.00.
Common mistake: subtracting the rate from gross
If you subtract 22% from €122.00, you get €95.16. That is not the correct net price. The correct result is €100.00 because the 22% VAT was applied to €100.00, not to €122.00.
Practical numerical examples
- Gross €122.00 with 22% VAT → net €100.00, VAT €22.00.
- Gross €49.90 with 22% VAT → net €40.90, VAT €9.00.
- Gross €109.90 with 10% VAT → net €99.91, VAT €9.99.
FAQ
Is reverse VAT calculation the same for every rate?
Yes. The formula is the same; only the VAT rate changes.
Why can’t I subtract the VAT percentage from the gross price?
Because the VAT percentage is applied to the net price. The gross amount already includes both net price and VAT.
When do I need the net price?
For quotes, margin checks, invoice controls, bookkeeping and comparing prices before tax.
Recommended internal links
Careful tax disclaimer
VAT rates and treatments can change, and exceptions may apply. Before using a calculation on an invoice or return, check the current rate, country and transaction type from updated sources.