How to use this tool
- Choose whether you are adding tax to a price or removing it from a total.
- Pick a preset (UK VAT, India GST or a US state) or type your own rate.
- Read the net price, tax amount and total. For GST the CGST/SGST split is shown.
Why you divide instead of subtract
VAT is added on top of the net price, so a £100 item becomes £120. Taking 20% off £120 gives £96, which is wrong because 20% of £120 is more than the £20 VAT that was added. Dividing by 1.2 reverses the addition exactly.
| VAT rate | Divide total by | VAT fraction of total |
|---|---|---|
| 20% | 1.2 | 1/6 |
| 5% | 1.05 | 1/21 |
Frequently asked questions
How do I take 20% VAT off a price?
Divide the price by 1.2. £60 including VAT is £50 plus £10 VAT.
What is the VAT fraction?
For 20% VAT it is 1/6 of the VAT-inclusive price.
How do I remove 5% VAT?
Divide by 1.05. Choose UK VAT reduced 5% above.
Need more detail? See the full Sales Tax, VAT & GST Calculator guide.
Sources and references
- GOV.UK: VAT rates
- GST Council of India: official rate decisions
- CBIC tax information portal: GST notifications
- Tax Foundation: State and local sales tax rates