To remove 7.5% VAT from a total that already includes it, divide the total by 1.075. The answer is the price before VAT, and the difference is the VAT. Don't just take 7.5% off the total, because that gives the wrong figure. Enter your total below to see both parts.
How the Reverse VAT Calculator works
- Enter the total that already includes VAT.
- "Remove VAT from a price" is already selected.
- The calculator divides by 1 plus the VAT rate (1.075 for 7.5%).
- You get the price before VAT and the VAT inside the total.
Worked example
A supermarket receipt shows ₦53,750 including VAT. The shop owner needs the VAT part for her records.
Price before VAT: ₦53,750 ÷ 1.075 = ₦50,000
VAT inside the total: ₦53,750 − ₦50,000 = ₦3,750
Taking 7.5% off ₦53,750 would give ₦4,031.25, which is wrong.
Common mistakes to avoid
- Subtracting 7.5% of the total instead of dividing by 1.075
- Treating the whole VAT-inclusive price as your income
- Forgetting that exempt items in the total have no VAT in them
Need a different calculator?
When you need to remove VAT
You need the price before VAT when you record purchases for your VAT return, when a customer agrees a “VAT inclusive” price, or when you want to know how much of a fixed price is really yours to keep. In each case, the VAT part belongs to the tax office, not to your business.
Why dividing works and subtracting doesn’t
VAT is added on the price before VAT, not on the total. If the price before VAT is ₦100, the total is ₦107.50. Taking 7.5% of ₦107.50 gives ₦8.06, not the ₦7.50 that was really added. Dividing by 1.075 undoes the addition exactly.
Frequently asked questions
What is the VAT in ₦10,750?
₦10,750 ÷ 1.075 = ₦10,000 before VAT, so the VAT is ₦750.
Can I use this for a VAT-inclusive quote?
Yes. Enter the agreed total to see how much of it is VAT and how much is your price.
Are these the latest tax rules?
They follow the Nigeria Tax Act 2025, which took effect on 1 January 2026, and were last checked on the date shown on this page. Tax rules can change, so confirm big decisions with a tax adviser or the Nigeria Revenue Service.
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