Type an amount above - the figures update automatically.
This free VAT calculator works both ways. Use Add VAT when you have a net (pre-VAT) figure and need the total to charge a customer, and use Remove VAT when you have a VAT-inclusive price and need to strip the tax back out - handy for reclaiming VAT or working out the true cost of a purchase. It covers the UK's three VAT rates plus a custom field for any other percentage.
How to calculate VAT
Adding VAT to a net price
Multiply the net amount by the VAT rate to get the VAT, then add it on. At the standard 20% rate the VAT is the net figure times 0.2. A quick shortcut is to multiply the net price by 1.2 to jump straight to the gross total.
Removing VAT from a gross price
To go the other way, divide the VAT-inclusive (gross) price by 1 plus the rate. For 20% that means dividing by 1.2; for the 5% reduced rate you divide by 1.05. The VAT is simply the gross figure minus the net figure you just worked out. Do not just take 20% off the gross total - that gives the wrong answer, because the 20% was added to the smaller net figure, not the larger gross one.
A worked example
Adding VAT: A tradesman quotes a net price of £250 for a job. VAT at 20% is £250 × 0.2 = £50. The gross price on the invoice is £250 + £50 = £300.
Removing VAT: A receipt shows a gross total of £300 including 20% VAT. The net figure is £300 ÷ 1.2 = £250, so the VAT element is £300 - £250 = £50.
The UK VAT rates in brief
- 20% standard rate - most goods and services.
- 5% reduced rate - domestic energy, children's car seats, some mobility aids and energy-saving materials.
- 0% zero rate - most food, children's clothing, books and newspapers. Still VAT-taxable, just charged at 0%.
VAT inclusive vs exclusive prices
A VAT-exclusive (net) price is the figure before tax is added - the amount a business keeps. A VAT-inclusive (gross) price already has the VAT baked in - the amount a customer actually pays at the till. Consumer prices in UK shops are shown VAT-inclusive by law, while trade quotes are often given VAT-exclusive with the tax added on top. Switch this tool to Add VAT to turn an exclusive price into an inclusive one, or use it as a reverse VAT calculator to work back the other way.
Knowing how to remove VAT from a price matters when you are checking a supplier receipt, reclaiming input tax, or splitting out the VAT element for your bookkeeping. With the VAT calculator set to 20%, just enter the gross total and the net and VAT figures appear instantly - no dividing by 1.2 in your head.
Frequently asked questions
What is the current UK VAT rate?
The standard UK VAT rate is 20% and applies to most goods and services. There is also a reduced rate of 5% (for things like domestic energy and children's car seats) and a zero rate of 0% (for most food, children's clothing and books). The standard 20% rate has been in place since 4 January 2011.
How do I remove VAT from a price?
To remove 20% VAT from a gross (VAT-inclusive) price, divide the total by 1.2. The result is the net price, and the difference between the two figures is the VAT. For example, £120 ÷ 1.2 = £100 net, so the VAT is £20. For the 5% reduced rate, divide by 1.05 instead. A common mistake is subtracting 20% of the gross figure, which gives the wrong answer.
How do I add VAT to a price?
To add 20% VAT to a net price, multiply the amount by 0.2 to find the VAT, then add it to the net to get the gross. For example, £100 × 0.2 = £20 VAT, giving a gross price of £120. As a shortcut you can multiply the net price by 1.2 to get the gross figure directly.
How does a reverse VAT calculator work?
A reverse VAT calculator removes VAT from a gross, VAT-inclusive price. At the standard 20% rate it divides the total by 1.2 to find the net (VAT-exclusive) figure, then subtracts that from the gross to show the VAT. For example, £120 ÷ 1.2 = £100 net and £20 VAT. Switch this tool to Remove VAT and it does the reverse calculation for you at 20%, 5% or any custom rate.
What is the difference between VAT-inclusive and VAT-exclusive prices?
A VAT-exclusive price is the net amount before tax; a VAT-inclusive price is the gross amount the customer pays with VAT already added. Add VAT to a net (exclusive) price by multiplying by 1.2 at 20%; remove VAT from a gross (inclusive) price by dividing by 1.2. UK retail prices are shown inclusive, while many trade quotes are exclusive with VAT added on top.
When do I have to register for VAT in the UK?
You must register for VAT with HMRC once your VAT-taxable turnover goes over the registration threshold of £90,000 in any rolling 12-month period, or if you expect to pass it within the next 30 days. You can also register voluntarily below the threshold, which lets you reclaim VAT on your business purchases.
What is reduced-rate VAT?
Reduced-rate VAT is 5% and applies to a specific list of goods and services, including domestic gas and electricity, children's car seats, mobility aids for older people, and certain energy-saving home improvements. Most goods and services do not qualify and are charged at the standard 20% rate instead.
Is this VAT calculator accurate for my invoices?
Yes. The calculator uses the standard HMRC method: it multiplies the net amount by the rate to add VAT, and divides the gross amount by one plus the rate to remove VAT. Figures are rounded to two decimal places for display. For an official VAT invoice, HMRC allows you to round the VAT total down to the nearest penny per line if you prefer, but the calculation method is the same.
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