How to take VAT off a price: divide by 1.2
To take 20% VAT off a price, divide it by 1.2. Here is why it works, why taking 20% off gives the wrong answer, examples, the 5% rate and spreadsheet formulas.
The calculator needs JavaScript switched on in your browser.
The quick answer: to take 20% VAT off a price, divide it by 1.2. A price of £60 including VAT is £60 ÷ 1.2 = £50 without VAT, so the VAT is £10. For the 5% rate, divide by 1.05.
The calculator above does the sum for you. It takes VAT off a price or adds it, at 20%, 5% or any other rate, and shows the working. To put the calculator on your own website, use the code on the VAT calculator page.
How to do it on a calculator or your phone
- Type in the price including VAT, for example 84.
- Press ÷, type 1.2 and press =. The answer, 70, is the price without VAT.
- To see the VAT, take the answer away from the price you started with: 84 − 70 = 14.
Round the price without VAT to the nearest penny, then work out the VAT as the difference. That way the two always add up exactly to the price you started with.
Why you divide by 1.2
A price including 20% VAT is the original price plus 20% of it, which is 120% of the original, or 1.2 times it. To get back to the original, you undo the multiplication by dividing by 1.2.
This is also why taking 20% off does not work. 20% of £120 is £24, which leaves £96, but the price without VAT is £100: the VAT was 20% of £100, not 20% of £120.
Examples
| Price with 20% VAT | ÷ 1.2 = price without VAT | VAT |
|---|---|---|
| £10.00 | £8.33 | £1.67 |
| £24.00 | £20.00 | £4.00 |
| £99.99 | £83.33 | £16.66 |
| £480.00 | £400.00 | £80.00 |
| £1,500.00 | £1,250.00 | £250.00 |
Finding just the VAT: divide by 6
If you only need the VAT, divide the price including VAT by 6. HMRC calls this the VAT fraction: at 20% the VAT is one sixth of a VAT-inclusive price, because 20 ÷ 120 = 1/6. A £1,500 laptop therefore contains £1,500 ÷ 6 = £250 of VAT. At the 5% rate, divide by 21.
Other VAT rates
The UK has three VAT rates. Most goods and services are at the standard rate of 20%. Some, such as children’s car seats and household gas, are at the reduced rate of 5%. Others, such as most food and children’s clothes, are zero-rated, so there is no VAT to remove. Household electricity in Great Britain is also zero-rated from 1 October 2026 to 31 March 2027. The method is the same for any rate: divide by 1 plus the rate as a decimal, so 1.05 for 5% or 1.175 for the old 17.5% rate, which applied until 3 January 2011.
In a spreadsheet
With the price including VAT in cell A2, use =ROUND(A2/1.2, 2) for the price without VAT and =A2-ROUND(A2/1.2, 2) for the VAT. These work in Excel, Google Sheets and LibreOffice.
Questions people ask
How do I take 20% VAT off a price?
Divide the price by 1.2. Do not subtract 20%, which takes off too much.
How do I take 5% VAT off a price?
Divide the price by 1.05. A £21 price with 5% VAT is £20 without VAT, and the VAT is £1.
How do I add VAT to a price?
Multiply by 1.2 for 20% VAT, or by 1.05 for 5%.
Sources
GOV.UK: VAT rates; HMRC: VAT guide (VAT Notice 700), section 7.3.1, VAT fractions; GOV.UK: temporary zero rate of VAT on domestic electricity in Great Britain.