How to take VAT out of a price
A till receipt shows a price with VAT already in it. Find the net price and the VAT inside it, without the common mistake.
Task 1From the gross price back to the net price4 questions
A gross price is 120% of the net price. To get back to the net price, divide the gross price by 1.2.
Worked example: a gross price of £180. 180 ÷ 1.2 = £150.
Do not take 20% off the gross price. The VAT was 20% of the net price, which is a smaller figure.
Task 2The VAT inside a gross price4 questions