How to add and remove VAT
Add VAT: price × 1.2 | Remove VAT: price ÷ 1.2
Don't remove VAT by taking 20% off. £27.00 less 20% is £21.60, but the correct ex-VAT price is £27.00 ÷ 1.2 = £22.50. VAT is one sixth of a VAT-inclusive price at 20%.
DrinksCalc / Tax and duty
Add or remove UK VAT. Standard rate is 20%.
Add VAT: price × 1.2 | Remove VAT: price ÷ 1.2
Don't remove VAT by taking 20% off. £27.00 less 20% is £21.60, but the correct ex-VAT price is £27.00 ÷ 1.2 = £22.50. VAT is one sixth of a VAT-inclusive price at 20%.