VATCalculator UK

Remove VAT from £12

£12 gross contains £2 of VAT, leaving £10 net. Use the calculator below to extract VAT from any gross amount.

Enter values above to calculate.

To remove UK VAT, divide the gross (VAT-inclusive) amount by 1 + (rate ÷ 100). At the standard 20% rate that is ÷ 1.20, so £12 ÷ 1.20 = £10 net, and the VAT is £12 − £10 = £2.

A common mistake is to subtract 20% from the gross — that under-removes the VAT, because the 20% was charged on the smaller net figure, not the gross.

How it works.

Formula: net = gross ÷ (1 + rate ÷ 100); VAT = gross − net.

  1. Divide by 1.20: £12 ÷ 1.20 = £10 net.
  2. VAT element: £12 − £10 = £2.
  3. Check: £10 × 1.20 = £12.
Worked examples
£12 gross − 20% VAT = £10 net — the VAT element of the £12 total is £2.
Reading a receipt — a £12 VAT-inclusive total breaks down as £10 net plus £2 VAT.
Why divide, not subtract 20% — the VAT is 20% of the net, not of the gross. Divide the gross by 1.20: £12 ÷ 1.20 = £10.
Related: Add VAT to £12 Remove VAT from £10 Remove VAT from £15 VAT amount tables
Sources: HMRC VAT rates · retrieved 2026-06-18.

Frequently asked questions

How much VAT is in £12?
£2. With 20% VAT included, divide the gross by 1.20 to get the net (£12 ÷ 1.20 = £10), then the VAT is the difference: £12 − £10 = £2.
What is £12 minus VAT?
£10 net. Removing 20% VAT means dividing by 1.20, not subtracting 20% — subtracting 20% would give the wrong answer because the VAT is a fraction of the net.
What is the VAT fraction for 20%?
One-sixth. At 20%, the VAT in any gross amount is gross × 1/6. For £12 that is £12 × 1/6 = £2, matching the divide-by-1.20 method.