VAT Calculator
Add VAT to a net price or remove VAT from a gross price at the standard 20% rate, the reduced 5% rate, or a custom rate.
Mode
UK standard rate is 20%
Gross total (including VAT)
£120.00
VAT at 20%
- Net amount
- £100.00
- VAT amount
- £20.00
- Gross amount
- £120.00
How is VAT calculated?
Value Added Tax is a consumption tax added to most goods and services in the UK. The standard rate is 20%, with a reduced rate of 5% on some items such as domestic energy, and a zero rate on essentials like most food and children’s clothing.
To add VAT, multiply the net price by the rate and add it on. To remove VAT from a gross (VAT-inclusive) price, divide by 1 plus the rate, so for 20% you divide by 1.2. This calculator does both and shows the net, VAT and gross figures.
Worked example
Adding 20% VAT to a net price of £100 gives £20 of VAT and a gross total of £120.
Removing 20% VAT from a gross price of £120 gives a net price of £100 and £20 of VAT. Note that you divide by 1.2 rather than simply taking off 20%.
Frequently asked questions
Why can’t I just take 20% off a gross price?
Because the 20% was added to the smaller net figure. To reverse it you divide by 1.2, which correctly removes the VAT that was added.
What is the current UK VAT rate?
The standard rate is 20%. A reduced 5% rate applies to some goods and services, and some items are zero-rated or exempt.
Can I use a different rate?
Yes. Enter any rate in the custom field to handle historical rates or other scenarios.
Is VAT the same across the UK?
Yes. VAT is set at UK level and applies the same in England, Scotland, Wales and Northern Ireland.
Do I need to charge VAT?
Businesses must register for VAT once their taxable turnover passes the registration threshold. Below that, registration is optional.
Figures last reviewed on 13 August 2025.
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