Finance
How to Remove VAT or GST from a Gross Price: Divisor Table
Why taking the rate off a gross price is wrong, the divisor and VAT-fraction methods, a divisor table from 5% to 27%, worked examples in six countries and invoice rounding.
By TooleemPublished Facts checked
Short answer
To remove VAT or GST from a price that includes it, divide by (1 + rate): at 20%, divide by 1.20; at 15%, by 1.15. The tax is the gross price minus that result, or the gross price × rate ÷ (100 + rate), which is 1/6 at 20% and 3/23 at 15%. Do not multiply by (1 − rate): taking 20% off a £59.99 gross price gives £47.99, but the real net price is £49.99, so the VAT is £10.00, not £12.00.
Do the calculation
Ireland VAT Calculator
Enter a gross price and the rate to split it into the net price and the VAT, or add VAT to a net price.
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Why subtracting the rate is wrong
VAT is charged as a percentage of the net price. Once it is added, the gross price is 100% + rate of the net price, so the tax is a smaller share of the gross than the headline rate. HMRC uses this example: an item sold for £2.40 including 20% VAT contains 40p of VAT, which is one-sixth of £2.40, not 20% of it.
| Method | Calculation | Net price | VAT |
|---|---|---|---|
| Divide by 1.20 (correct) | 59.99 ÷ 1.20 | £49.99 | £10.00 |
| VAT fraction 1/6 (correct) | 59.99 × 20 ÷ 120 | £49.99 | £10.00 |
| Take 20% off (wrong) | 59.99 × 0.80 | £47.99 | £12.00 |
The divisor method
Net price
net = gross ÷ (1 + rate ÷ 100)
Tax included in a gross price
tax = gross × rate ÷ (100 + rate)
Both give the same answer; the second is what tax authorities call the VAT fraction. Check your result by going forwards: net × (1 + rate) should give back the gross price, to the cent.
Divisor table, 5% to 27%
| Rate | Divide gross by | Tax share of gross | Net in 100 gross | Wrong method gives | Error per 100 |
|---|---|---|---|---|---|
| 5% | 1.05 | 4.76% | 95.24 | 95.00 | 0.24 |
| 7% | 1.07 | 6.54% | 93.46 | 93.00 | 0.46 |
| 8% | 1.08 | 7.41% | 92.59 | 92.00 | 0.59 |
| 9% | 1.09 | 8.26% | 91.74 | 91.00 | 0.74 |
| 10% | 1.10 | 9.09% | 90.91 | 90.00 | 0.91 |
| 12% | 1.12 | 10.71% | 89.29 | 88.00 | 1.29 |
| 13% | 1.13 | 11.50% | 88.50 | 87.00 | 1.50 |
| 14% | 1.14 | 12.28% | 87.72 | 86.00 | 1.72 |
| 15% | 1.15 | 13.04% | 86.96 | 85.00 | 1.96 |
| 17% | 1.17 | 14.53% | 85.47 | 83.00 | 2.47 |
| 18% | 1.18 | 15.25% | 84.75 | 82.00 | 2.75 |
| 19% | 1.19 | 15.97% | 84.03 | 81.00 | 3.03 |
| 20% | 1.20 | 16.67% | 83.33 | 80.00 | 3.33 |
| 21% | 1.21 | 17.36% | 82.64 | 79.00 | 3.64 |
| 22% | 1.22 | 18.03% | 81.97 | 78.00 | 3.97 |
| 23% | 1.23 | 18.70% | 81.30 | 77.00 | 4.30 |
| 24% | 1.24 | 19.35% | 80.65 | 76.00 | 4.65 |
| 25% | 1.25 | 20.00% | 80.00 | 75.00 | 5.00 |
| 27% | 1.27 | 21.26% | 78.74 | 73.00 | 5.74 |
Worked examples in five countries
| Country | Standard rate | Gross price | Net price | Tax |
|---|---|---|---|---|
| United Kingdom | 20% | £59.99 | £49.99 | £10.00 |
| Ireland | 23% | €123.00 | €100.00 | €23.00 |
| Germany | 19% | €49.99 | €42.01 | €7.98 |
| New Zealand | 15% | NZ$49.95 | NZ$43.43 | NZ$6.52 |
| Singapore | 9% | S$109.00 | S$100.00 | S$9.00 |
Worked example
Canada: one rate per province
In Ontario the HST is 13%, so C$56.50 including HST is C$56.50 ÷ 1.13 = C$50.00 plus C$6.50 of HST. In Alberta only the 5% GST applies, so the same C$56.50 is C$53.81 plus C$2.69. Use the rate of the province where the supply is made.
Reduced rates work the same way: 13.5% in Ireland means dividing by 1.135, and 7% in Germany means dividing by 1.07. Use the rate that applies to the specific item, not the standard rate.
Rounding on invoices
- Work out the tax on the total of each rate band where you can, then round once. Rounding every line and adding can drift by a cent or two from the tax on the total.
- In the UK, HMRC lets invoice traders round the total VAT on an invoice down to a whole penny, and sets out how to round line-by-line amounts (VAT Notice 700, section 17.5). Retailers follow separate rules.
- Other countries have their own rounding rules; when the amounts are for a tax return, follow the guidance of the tax authority where you are registered.
Need the rate for another country first? See VAT and GST rates by country.
Do the calculation
Ireland VAT Calculator
Enter a gross price and the rate to split it into the net price and the VAT, or add VAT to a net price.
Tools used in this guide
Sources
The figures and rules in this guide come from these documents.
- VAT guide (VAT Notice 700), sections 7.3.1 and 17.5HM Revenue & CustomsThe VAT fraction (rate ÷ (100 + rate), one-sixth at 20%) and invoice rounding.
- VAT ratesGOV.UKUK standard rate 20%, reduced rate 5%, zero rate.
- Current VAT ratesRevenue (Ireland)Standard rate 23%, reduced rates 13.5% and 9%, from 1 January 2026.
- Umsatzsteuergesetz, § 12 SteuersätzeBundesministerium der JustizGerman VAT: 19%, reduced 7%.
- Charging GSTInland Revenue (New Zealand)GST at 15% on most taxable supplies.
- Current GST ratesInland Revenue Authority of SingaporeGST at 9%.
- GST/HST calculator (and rates)Canada Revenue AgencyGST 5% and HST rates by province, including Ontario 13%.
Facts checked
General information, not legal, tax or financial advice. Rules change; check the cited sources for your own case.
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