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UK VAT Calculator — Add or Remove VAT

Work out the VAT on a price in seconds: add VAT to a net amount, or remove VAT from a VAT-inclusive figure at 20%, 5%, 0% or a custom rate — with the exact formula shown.

Rates checked against GOV.UK on 23 October 2026 · Runs on your device · Estimates only, not tax advice

The price before VAT is added.

VAT rate

Which rate applies depends on what you sell and the circumstances — check GOV.UK before invoicing.

Runs in your browser — nothing you enter is sent to us.

Add VAT at 20%

Net amount (excl. VAT)
£100.00
VAT at 20%
£20.00
Gross amount (incl. VAT)
£120.00

VAT = £100 × 20%; Gross = £100 + VAT

Before you use these figures

  • The rate depends on what you're selling and to whom. Most goods and services are standard-rated at 20%, but check GOV.UK's VAT rates for your supply.
  • Zero-rated (0%) is not the same as VAT-exempt. Zero-rated sales are still taxable supplies and count towards the registration threshold; exempt sales don't.
  • You can only charge or reclaim VAT if you're VAT-registered (or required to be).

Guidance only — not tax or legal advice. Which VAT rate applies depends on your supply and circumstances. Check GOV.UK or speak to a qualified adviser before invoicing.

How to add VAT to a price

Multiply the net (VAT-exclusive) price by the rate, then add it on. At the standard 20% rate: VAT = net × 0.20 and gross = net + VAT. So £250 net becomes £250 + £50 = £300 including VAT. A quick 20% shortcut is to multiply the net by 1.2.

How to remove VAT from a price

Divide the gross (VAT-inclusive) price by 1 plus the rate: net = gross ÷ 1.20 at 20%, and VAT = gross − net. A £120 receipt breaks down as £100 net and £20 VAT.

The common mistake is subtracting 20% of the gross — that gives £96, which is wrong, because the 20% was charged on the net, not the gross. At 20%, the VAT element is actually one sixth of the VAT-inclusive price; at 5% it's 1/21.

Which VAT rate applies?

The rate depends on what is being supplied and the circumstances — this calculator can't decide that for you. As a rough guide:

  • Standard rate, 20% — most goods and services.
  • Reduced rate, 5% — for example domestic fuel and power, and children's car seats.
  • Zero rate, 0% — for example most food and children's clothes.

Always confirm the rate for your specific supply on GOV.UK: VAT rates before invoicing or pricing.

Zero-rated is not the same as exempt

Zero-rated sales are still taxable supplies charged at 0% — they count towards the VAT registration threshold and usually let you reclaim VAT on related costs. VAT-exempt sales (such as most insurance, finance and some education and health services) are outside the charging system: they don't count towards the threshold and can restrict how much input VAT you reclaim. "Outside the scope" income (like some grants and statutory fees) is different again. If your income mixes these, check GOV.UK or take advice.

Need to check whether you must register for VAT?

This page works out the VAT on individual amounts. Whether you must register is a separate question based on your rolling 12-month taxable turnover against the £90,000 threshold — use the VAT Threshold Calculator for that, including registration deadlines and effective dates.

How this is calculated

  • Add VAT: VAT = net × rate; gross = net + VAT.
  • Remove VAT: net = gross ÷ (1 + rate); VAT = gross − net.
  • Figures are rounded to whole pennies; net and VAT always sum back to the gross.
  • Standard (20%), reduced (5%) and zero (0%) rates come from GOV.UK; the custom rate option is there for historic or non-UK rates and is your responsibility to check.
  • All arithmetic runs in your browser — nothing you enter is sent to us.

Sources

Last reviewed: 23 October 2026.

Related

Checking whether you need to register? Use the VAT registration threshold checker. For pricing your time before VAT, try the freelance hourly & day rate calculator, and read which turnover and income figures to use.

Working out your Income Tax as well? Use the self-employed tax calculator to see tax, National Insurance and how much to set aside each month.

Frequently asked questions

How do I add VAT to a price?

Multiply the net price by the VAT rate. At 20%: VAT = net × 0.20, then gross = net + VAT. For example, £100 net at 20% is £20 VAT and £120 gross.

How do I remove VAT from a VAT-inclusive price?

Divide the gross by 1 plus the rate — don't subtract the percentage. At 20%: net = gross ÷ 1.20, so £120 gross is £100 net and £20 VAT. Subtracting 20% of £120 would wrongly give £96.

What fraction of a VAT-inclusive price is VAT?

At 20% the VAT element is 1/6 of the gross price; at 5% it's 1/21. So on a £120 invoice the VAT is £120 ÷ 6 = £20.

What's the difference between zero-rated and VAT-exempt?

Zero-rated supplies (like most food and children's clothes) are taxable at 0% — they count towards the VAT registration threshold and you can usually reclaim related input VAT. Exempt supplies (like most insurance and some education) are not taxable, don't count towards the threshold, and can block input VAT recovery.

Which VAT rate should I use?

It depends on what you supply and the circumstances. Most goods and services are standard-rated at 20%; some, like domestic fuel and children's car seats, are reduced-rated at 5%; some are zero-rated. Check GOV.UK's VAT rates guidance or ask HMRC before invoicing.

Can I charge VAT if I'm not VAT-registered?

No. You can only charge VAT once you're registered. If your taxable turnover is approaching £90,000, use the VAT Threshold Calculator to check whether you need to register.