VAT Calculator UK
Add or remove consumption tax and see the net and gross amounts.
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How it works
Adding tax multiplies the net price by the rate and adds it on. Removing tax works backwards from a tax-inclusive price to find the original net amount.
Gross = Net × (1 + rate); Net = Gross ÷ (1 + rate)Frequently asked questions
What is the standard UK VAT rate?
20%. There is also a 5% reduced rate on certain goods and a 0% zero rate on essentials such as most food and children’s clothing.
How do I add VAT to a price?
Multiply the net price by 1.20 for standard-rate VAT. £100 plus VAT is £120.
How do I remove VAT from a total?
Divide the VAT-inclusive total by 1.20. A £120 gross price is £100 net, with £20 of VAT.
What items are zero-rated or reduced-rated?
Most food, books and children’s clothing are zero-rated; domestic fuel and power and a few other items are charged at the 5% reduced rate.
When must a business register for VAT?
When taxable turnover exceeds the £90,000 registration threshold, though businesses below it can register voluntarily.
Can businesses reclaim VAT?
Yes. VAT-registered businesses generally reclaim the VAT they pay on eligible purchases, offsetting it against the VAT they charge.
How UK VAT works
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 items such as domestic energy and children’s car seats, and a zero rate (0%) on essentials like most food, books and children’s clothing.
Adding VAT
To add standard-rate VAT, multiply the net price by 1.20. A £100 net item becomes £100 × 1.20 = £120, of which £20 is VAT. At the 5% reduced rate you would multiply by 1.05 instead.
Removing VAT (reverse calculation)
To find the net price from a VAT-inclusive total, divide by 1.20. A £120 gross price was £120 ÷ 1.20 = £100 net, so the VAT element was £20. This is useful for expenses and bookkeeping where prices are shown inclusive of VAT.
Who charges VAT
Businesses must register for VAT once taxable turnover exceeds the registration threshold (£90,000), after which they charge VAT on sales and can reclaim VAT on purchases. Smaller businesses can register voluntarily. This is general information, not tax advice.
Results are estimates for general guidance in United Kingdom and may not reflect the latest local rates, fees or rules. Check official sources before making decisions.