VAT Calculator
Add or remove 20% UK VAT from a price instantly.
What this calculator does
Adds VAT to a net price or removes VAT from a VAT-inclusive gross price, at the standard, reduced, or zero rate — the two directions require different math, which this calculator handles automatically.
Who this is for
UK business owners pricing goods or services, anyone checking whether a quoted price includes VAT, or shoppers and freelancers working out the actual VAT component of a receipt or invoice.
How this calculator works
Adding VAT: net × (1 + rate). Removing VAT from a VAT-inclusive price: gross ÷ (1 + rate) to get the net figure, then the difference is the VAT amount. The UK standard rate has been 20% since January 2011.
Worked example
Adding VAT: a £100 net price at 20% VAT: £100 × 1.20 = £120 gross. Removing VAT: a £120 VAT-inclusive price: £120 ÷ 1.20 = £100 net, so the VAT component is £120 − £100 = £20 — notice this is NOT the same as simply taking 20% of £120 (which would incorrectly give £24).
Net price vs. VAT
Run the calculator above to see the net vs. VAT split of the gross price.
Common mistakes
- Multiplying the gross price by 20% to find VAT. This overstates it — VAT on a VAT-inclusive gross price is gross ÷ 1.2 × 0.2, not gross × 0.2, since the 20% is a fraction of the net price, not the gross.
- Using the wrong rate. Most goods and services use the 20% standard rate, but some categories (children's car seats, home energy) qualify for the 5% reduced rate, and some (most food, children's clothes, books) are zero-rated.
- Forgetting the VAT registration threshold. UK businesses only need to charge VAT once turnover exceeds the current registration threshold — below that, VAT usually doesn't apply.
- Confusing zero-rated with VAT-exempt. Zero-rated goods are still technically within the VAT system (at 0%), letting the business reclaim input VAT; exempt goods and services are outside the system entirely, meaning the business generally can't reclaim VAT on related costs.
Related calculators
Related reading
Frequently Asked Questions
What's the difference between zero-rated and VAT-exempt?
Zero-rated goods (most food, books, children's clothes) are still within the VAT system, just taxed at 0% — businesses can still reclaim VAT on related costs. VAT-exempt goods and services (like most financial services and insurance) sit entirely outside the VAT system, and businesses generally cannot reclaim input VAT on costs related to them.
What is the current UK standard VAT rate?
20%, in place since January 2011. A 5% reduced rate applies to specific categories like home energy, and some goods (most food, children's clothes, books) are zero-rated.
How do I remove VAT from a price correctly?
Divide the VAT-inclusive (gross) price by 1 + the VAT rate (1.20 for the standard rate) to get the net price. The difference between gross and net is the VAT amount — don't just multiply the gross price by the VAT percentage, since that overstates it.
Do all UK businesses have to charge VAT?
No — only businesses with taxable turnover above the current VAT registration threshold are required to register and charge VAT. Below that, VAT registration is optional.