Reverse VAT Calculator

A reverse VAT calculation (also called back-calculating VAT or VAT extraction) finds the net amount and the VAT amount hidden inside a gross price. The formula is: net = gross / (1 + VAT rate), and VAT = gross − net. This is the opposite of adding VAT to a net price.

Divide the gross price by 1.23. For example: 123 PLN gross / 1.23 = 100 PLN net; VAT = 123 − 100 = 23 PLN. Expressed as a percentage of the gross price, VAT at 23% represents approximately 18.70% of the gross.

Divide the gross price by 1.08. For example: 108 PLN gross / 1.08 = 100 PLN net; VAT = 8 PLN. At the 8% rate, VAT represents approximately 7.41% of the gross price.

Divide the gross price by 1.05. For example: 210 PLN gross / 1.05 = 200 PLN net; VAT = 10 PLN. At the 5% rate, VAT represents approximately 4.76% of the gross price.

Poland has four main VAT rates: 23% (standard rate), 8% (reduced rate for certain food products, construction services and more), 5% (basic foodstuffs, books, maps) and 0% (exports, certain intra-EU transactions). There is also a VAT exemption for entities below the 200,000 PLN annual turnover threshold.

These are two different concepts. Reverse VAT (or back-calculation) is a mathematical operation: extracting the tax from a gross price. Reverse charge is a legal VAT mechanism where the tax liability is transferred from the seller to the buyer — commonly used in B2B cross-border transactions and for certain domestic goods like scrap metal or construction services.

When you have a gross price that already includes VAT, you must divide by (1 + rate) to recover the net base — because the gross is the net multiplied by (1 + rate). Multiplying the gross by the rate directly would give you VAT calculated on the gross, which is always larger than the actual VAT figure and would be incorrect.

VAT at 23% represents 23/123 ≈ 18.70% of the gross price. This means that out of every 123 PLN gross, 100 PLN is net and 23 PLN is tax. The fact that 23% of 100 (net) equals roughly 18.70% of 123 (gross) is a common source of confusion.

Yes — the formula is currency-independent. Simply enter the gross or net amount in any currency and choose the correct VAT rate. The calculator returns results in the same currency unit you entered. The VAT rates shown (23%, 8%, 5%, 0%) are the Polish rates, but the arithmetic works for any currency.

No. The results are indicative only and do not constitute tax or accounting advice. For tax filings, invoices or audits, always verify calculations with a qualified accountant or tax adviser and refer to current legislation.