Taxes
Remove VAT from a gross price
Divide the tax-inclusive price by one plus the rate to recover the base.
The Formula
Net = gross / (1 + rate)
Divide the tax-inclusive price by one plus the rate to recover the base.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| G | Gross price | currency | Price including VAT. |
What Each Symbol Means
Gcurrency
Gross price
Price including VAT.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate vat page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate VAT, filed under Finance. Every number the guide produces comes from substituting into this one line.