VAT Calculator UK
Calculate UK VAT at the 20% standard rate, 5% reduced rate or a custom rate. Add VAT to a net price or remove the VAT already included in a gross amount to see the net, VAT and gross figures.
Calculator
What this means
VAT (Value Added Tax) is a tax added to most goods and services in the UK. The standard rate is 20%, with a 5% reduced rate on items such as home energy and some health products, and a 0% rate on essentials like most food and children's clothing. This tool either adds VAT to a net price or extracts the VAT from a VAT-inclusive total.
How to use this calculator
- Enter an amount.
- Choose whether to add VAT to a net figure or remove it from a gross figure.
- See the VAT amount and the net and gross totals.
Worked example
You have a net price of £100 and want to add 20% VAT.
- VAT at 20% on £100 = £20.
- Gross price = £100 + £20 = £120.
The VAT-inclusive price is £120, of which £20 is VAT.
Who this is for
- Small businesses and freelancers invoicing clients.
- Anyone separating VAT from a receipt total.
- Shoppers checking the VAT element of a price.
Adding and removing VAT
The standard UK VAT rate is 20%. To add VAT, multiply the net amount by 1.20. To remove VAT from a gross amount, divide by 1.20 — not subtract 20%, which is a common mistake.
Some goods and services use a reduced 5% rate or are zero-rated. Businesses must register for VAT once taxable turnover passes the registration threshold.
Frequently asked questions
The standard UK VAT rate is 20%. A reduced rate of 5% applies to some goods and services such as domestic energy, and a 0% rate applies to most food, books and children's clothing.
To find the price before 20% VAT, divide the VAT-inclusive total by 1.2. This calculator does it for any rate — just choose 'Remove VAT' and enter your gross amount.
A business must register for VAT once its VAT-taxable turnover goes over the registration threshold in a rolling 12-month period. You can also register voluntarily below the threshold to reclaim VAT on purchases.
Divide the gross (VAT-inclusive) amount by 1.20 to get the net amount. The difference is the VAT. Dividing by 1.20 is not the same as taking off 20%.
The standard rate is 20%. A reduced rate of 5% applies to some items (such as domestic energy), and some goods are zero-rated.
Disclaimer
This calculator provides estimates for guidance only. It is not financial, legal or tax advice. Always check official sources or speak to a qualified professional before making decisions.
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