How to use the VAT Calculator tool
3 simple steps · under a minute
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Choose add or remove
Add VAT to a net price, or remove it from a price that already includes VAT.
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Enter the amount
Type the price in pounds.
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Pick the VAT rate
See the net price, the VAT and the gross price.
About VAT calculator
Value Added Tax (VAT) is charged on most goods and services sold in the UK. The standard rate is 20%, with a reduced rate of 5% for items such as domestic energy and children’s car seats, and 0% for most food, children’s clothes and books. This VAT calculator adds or removes VAT in one click.
To remove VAT from a gross price, do not take 20% off — divide by 1.2 instead. For example, £120 including VAT is £100 net plus £20 VAT. The calculator handles this correctly for any rate.
Add or remove VAT
Works forwards from net prices and backwards from VAT-inclusive prices.
UK rates
Standard 20%, reduced 5% and zero rate.
Net, VAT and gross
All three amounts shown together, ready for an invoice.
Frequently asked questions
How do I add 20% VAT?
Multiply the net price by 1.2. £100 + 20% VAT = £120.
How do I remove VAT from a price?
Divide the gross price by 1.2 for 20% VAT. £120 ÷ 1.2 = £100 net, so the VAT is £20.
Why can’t I just take 20% off?
Because VAT was added to the net price, not the gross. 20% of £120 is £24, which is more than the £20 of VAT included.
What is the VAT registration threshold?
UK businesses must register for VAT when their taxable turnover goes over the threshold set by HMRC (£90,000 since April 2024).
Which goods have 0% VAT?
Most food, books and newspapers, children’s clothes and shoes, among others. Zero-rated is different from exempt.