UK VAT Calculator
Add VAT to a net price, or strip it out of a gross price that already includes it. Works for all three UK VAT rates: standard (20%), reduced (5%) and zero (0%). Every figure is shown with the full working so you can see exactly how the number was reached.
Explain like I'm 5 (what even is VAT?)
VAT stands for Value Added Tax. When a business sells you something, it usually has to collect an extra percentage on top of the price and pass that money to HMRC. Most things you buy in a shop include VAT already: that £12 bottle of wine has 20% tax baked in. This calculator lets you either add that tax to a price (to find what a customer pays) or remove it (to find the underlying net price before tax).
Calculate
Enter an amount and press Calculate.
Results
- Net (ex-VAT)–
- VAT amount–
- Gross (inc. VAT)–
- Rate applied–
Prove it
Adding VAT: gross = net × (1 + rate ÷ 100). Removing VAT: net = gross ÷ (1 + rate ÷ 100). VAT amount = gross − net.
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UK VAT rates explained
Most goods and services in the UK are subject to VAT at 20%,the standard rate. A smaller group of supplies, including domestic energy, children's car seats and some insulation materials, falls under the reduced rate of 5%. Then there is the zero rate: VAT applies in principle, but at 0%, so no VAT is actually collected. Zero-rated items include most food sold in shops, children's clothing, printed books, and prescription medicines.
A fourth category is VAT-exempt. These supplies sit outside the VAT system entirely, which matters because businesses can generally reclaim the VAT they paid on their costs only if those costs relate to taxable sales. Exempt supplies include financial services, insurance, education, and most health services.
Adding VAT versus removing it
The direction matters and the arithmetic is slightly different each way. To add 20% VAT to a net price of £100: multiply by 1.20 to get £120. To remove 20% VAT from a gross price of £120: divide by 1.20 to get £100. The mistake many people make is subtracting 20% from the gross price,£120 × 20% = £24, giving a net of £96. That is wrong, because 20% of the gross and 20% of the net are different amounts.
When you need to charge VAT
You must register for VAT once your taxable turnover in any rolling 12-month period exceeds £90,000 (the 2024/25 threshold). Below that, registration is optional. Once registered, you charge VAT on your sales and can reclaim VAT on most of your business purchases. The difference goes to, or comes back from, HMRC via your VAT return.
For anything beyond a rough estimate, especially if you are planning a pricing structure, an invoice, or a VAT return, talk to an accountant. The rules around partial exemption, VAT on imports, and mixed-rate supplies have a lot of edge cases.
Related calculators
VAT is one line on the invoice. The rest lives here.
Frequently asked questions
What are the UK VAT rates?
Standard rate: 20% on most goods and services. Reduced rate: 5% on domestic energy, children's car seats and some renovation work. Zero rate: 0% on food, children's clothing, books and most medicines. Some supplies are VAT-exempt entirely, which is different from zero-rated.
How do I remove VAT from a price?
Divide the gross (VAT-inclusive) price by 1.20 for standard rate, or by 1.05 for the reduced rate. The result is the net price. Do not subtract 20% from the gross: that gives the wrong answer because 20% of the gross is not the same as 20% of the net.
When do I need to register for VAT?
When your taxable turnover exceeds £90,000 in any rolling 12-month period. You can also register voluntarily below this threshold, which is often worth doing if your customers are VAT-registered businesses who can reclaim the VAT you charge them.
What is the difference between zero-rated and VAT-exempt?
Zero-rated supplies are taxable at 0%, so you can still reclaim VAT on related costs. VAT-exempt supplies are outside the VAT system, so you cannot reclaim input VAT on costs that relate only to exempt sales. The distinction affects how much VAT you can recover on your purchases.