VAT Calculator
Add VAT to a net price or remove VAT from a gross price at the UK standard, reduced or zero rate.
Price and VAT rate
| Net (excl. VAT) | £100.00 |
| VAT (20%) | £20.00 |
| Gross (incl. VAT) | £120.00 |
Quick answer
UK VAT is 20% on most goods and services, 5% on a few items such as home energy, and 0% on most food, books and children’s clothes. To add 20% VAT multiply by 1.2; to remove it from a VAT-inclusive price divide by 1.2 — so the VAT in a gross price is one sixth of the total. £120 including VAT is £100 plus £20 VAT.
How to add and remove VAT
Adding VAT: gross = net × (1 + rate). At 20%, a £250 net invoice becomes £300.
Removing VAT: net = gross ÷ (1 + rate). At 20%, the VAT is gross ÷ 6; at 5%, it is gross ÷ 21. Taking 20% off a VAT-inclusive price is a common mistake — 20% of £120 is £24, but the VAT inside £120 is only £20.
VAT for businesses
- You must register for VAT when your taxable turnover goes over £90,000 in any rolling 12-month period, or you expect it to in the next 30 days.
- VAT-registered businesses charge VAT on sales, reclaim VAT on business purchases and pay the difference to HMRC, usually quarterly through Making Tax Digital software.
- The Flat Rate Scheme lets small businesses pay a fixed percentage of gross turnover instead of tracking input VAT.
- Exempt supplies (such as most insurance, finance and education) are different from zero-rated supplies: zero-rated sales still count towards the registration threshold and allow VAT on costs to be reclaimed.
Reference tables & worked examples
| Amount | Add VAT: gross | Remove VAT: net | Remove VAT: VAT |
|---|---|---|---|
| £10.00 | £12.00 | £8.33 | £1.67 |
| £100.00 | £120.00 | £83.33 | £16.67 |
| £250.00 | £300.00 | £208.33 | £41.67 |
| £1,000.00 | £1,200.00 | £833.33 | £166.67 |
| £5,000.00 | £6,000.00 | £4,166.67 | £833.33 |
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by 1.2 for 20% VAT. £50 net becomes £60 including VAT.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.2 to get the net price. The VAT is the difference, or one sixth of the gross amount.
What are the UK VAT rates?
Standard rate 20%, reduced rate 5% and zero rate 0%. Some supplies are exempt from VAT altogether.
What is the VAT registration threshold?
£90,000 of taxable turnover in any rolling 12-month period. You can register voluntarily below it.
Is food zero-rated for VAT?
Most food for home consumption is zero-rated, but restaurant meals, hot takeaway food, confectionery, crisps and soft drinks are standard-rated.
What is the difference between exempt and zero-rated?
Both have no VAT on the sale, but zero-rated sales count towards the registration threshold and let businesses reclaim VAT on costs; exempt sales do not.
Sources
Estimates for general information only — not tax, legal or financial advice. Check your payslip, employer or a qualified adviser before acting.
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