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Add VAT to a price, or take it out of a VAT-inclusive total. Choose the standard 20% rate, the 5% reduced rate, the 0% zero rate, or type your own rate, and see the net amount, the VAT and the gross amount in pounds.
How to add and remove VAT
VAT is a percentage of the price before tax. The calculator uses these formulas:
- Add VAT: VAT = net price × rate ÷ 100, and gross price = net price + VAT. At 20%, multiply the net price by 1.20.
- Remove VAT: net price = gross price ÷ (1 + rate ÷ 100). At 20%, divide the gross price by 1.20.
- VAT inside a gross price: at 20% it is one sixth of the gross price. At 5% it is one twenty-first.
A common mistake is to take 20% off a VAT-inclusive price. Because 20% is worked out on the smaller net price, that removes too much. On £480, taking off 20% gives £384, but the correct net price is £400.
UK VAT rates
| Rate | Applies to |
|---|---|
| Standard, 20% | Most goods and services |
| Reduced, 5% | Some items, such as domestic fuel and power and children's car seats |
| Zero, 0% | Some items, such as most food, books and children's clothes |
A zero-rated sale is still a VAT-taxable sale, just at 0%, so you can normally reclaim the VAT on related business purchases. An exempt sale is outside VAT altogether, and you cannot normally reclaim VAT on costs linked to it. Which rate applies to a product depends on what it is, so check the official GOV.UK VAT rates guidance for your goods or services.
When do you have to register for VAT?
A UK business must register when its VAT-taxable turnover goes above £90,000 in any rolling 12-month period, or when it expects to pass that figure within the next 30 days. The threshold rose from £85,000 to £90,000 in April 2024, and the current guidance shows it unchanged for 2026/27. The threshold for deregistering is £88,000. You can register voluntarily below the threshold. Only VAT-registered businesses may charge VAT. Rates and thresholds were checked in September 2026, so confirm them on GOV.UK before you rely on them.
Worked examples
- Add 20% VAT. A service costs £250 before VAT. VAT = 250 × 0.20 = £50. The total is £300.
- Remove 20% VAT. A receipt shows £480 including VAT. Net price = 480 ÷ 1.20 = £400. VAT is £80.
- Remove 5% VAT. A bill shows £105 including VAT at 5%. Net price = 105 ÷ 1.05 = £100. VAT is £5.
If you sell goods, remember that VAT is not your income. Work out your profit margin on prices before VAT.
Frequently asked questions
How do I calculate 20% VAT on a price?
Multiply the price before VAT by 0.20 to get the VAT, or by 1.20 to get the total including VAT. For £100, the VAT is £20 and the total is £120.
How do I work out VAT from a VAT-inclusive price?
Divide the total by 1.20 to get the price before VAT, then subtract to find the VAT. For £120 the net price is £100 and the VAT is £20. At 20%, you can also divide the total by 6.
Do I charge VAT if I am not VAT registered?
No. Only VAT-registered businesses charge VAT on their sales. If your turnover is below the registration threshold and you have not registered voluntarily, you do not add VAT.
What is the difference between zero-rated and VAT-exempt?
Zero-rated sales are taxable at 0%, so you can normally reclaim the VAT on related costs. Exempt sales are outside VAT, and you usually cannot reclaim that VAT.
Does this calculator work for other countries?
The rates and rules on this page are for the UK, and amounts are shown in pounds. You can use the "Other rate" option to calculate a different percentage, but check the rules that apply to your country.