How to Split VAT Out of a Gross Price
Splitting VAT is a reverse calculation: you know the gross total and need the net price and the tax within it. Divide the gross by 1 + rate, then subtract the net from the gross to isolate the tax.
Open the tool：VAT Calculator (Gross to Net)
When you need the net figure
A supplier quotes a gross total, but the books need the net amount and the tax line separately. At 13% VAT, 113 gross is 100 net plus 13 tax. Multiplying 113 by 13% gives 14.69, which is wrong, because the tax base is the net price rather than the gross.
The same split matters when comparing quotes, filling an input-tax ledger, or checking that a purchase invoice is internally consistent. Once both quotes are stated net of tax, the comparison is honest; while one is gross and the other net, the cheaper-looking one may not be.
- Reconcile the net, tax and total on a VAT invoice
- Convert a gross quote to net before comparing suppliers
- Check that a quote's rate and tax amount agree
The formula and its edges
Net = gross ÷ (1 + rate), and tax = gross − net. Enter the rate as a percentage: 13 for 13%, not 0.13. The tool divides the rate by 100 and derives the tax by subtraction rather than a second multiplication, so the three figures always add up.
Three limits apply. Only one rate at a time is handled, so a mixed invoice must be split by rate. Results are rounded to two decimals, while an invoice may round per line or to the cent, which can leave a one-cent gap. The gross must be positive; zero or a negative amount has no business meaning here.
- Type 13 for 13%, never 0.13
- Split mixed-rate invoices line by line
- Treat the invoice, not the tool, as authoritative
Where it stops
This is an estimate for a single rate and a single amount. It does not handle differential taxation, input-tax credits, surcharges, zero-rated exports or refunds, and it cannot tell you which rate applies to a given sale. Cross-period adjustments, discounts and returns all need the original invoice.
For a filing, use the invoicing system. For a multi-line quote, put the formula in a spreadsheet row by row and sum the tax column. Income tax and payroll contributions follow different rules and cannot be derived from the VAT figure, so keep the two calculations separate.
- File from invoicing or tax software
- Multi-line work belongs in a spreadsheet
- Income tax and surcharges need their own calculation
FAQ
Why is the tax on 113 at 13% equal to 13, not 14.69?
Because VAT is charged on the net price. 113 ÷ 1.13 = 100 net, and 113 − 100 = 13 tax. Multiplying the gross by 13% would tax the tax as well, turning 113 into 127.69 and breaking the total.
Why does my invoice differ by one cent?
The tool rounds once, at the end. An invoice may round each line, or compute tax first and derive the net backwards. Different rounding order produces a one-cent gap. Reconcile to the invoice rather than editing it to match the tool.
What happens if I enter 0.13 as the rate?
It is read as 0.13%, so the net comes out almost identical to the gross. If the result differs from the gross by only a few cents, check whether the rate was entered as a percentage rather than a decimal.
Related tool：VAT Calculator (Gross to Net)