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Stripping tax out of a quoted price requires dividing by one plus the rate, not subtracting the rate. Subtracting 18% from an inclusive price understates the base and overstates the tax.
Tax-exclusive price
Base = inclusive / (1 + rate); tax = inclusive - base
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
Because the tax was calculated on the base, not the total. Dividing reverses the original operation exactly.
Whenever a supplier quotes a single inclusive figure but you need the taxable value for input credit or accounting.