VAT calculator
Add VAT to a net price, or take VAT off a gross total, in one step. Works with the UK standard rate of 20%, the reduced rate of 5% or any rate you choose.
How to calculate VAT
Adding VAT
To add VAT, multiply the net amount by 1 plus the VAT rate. At 20% that means multiplying by 1.2. At 5% you multiply by 1.05.
Removing VAT
To find the price before VAT, divide the gross amount by 1.2 (or 1.05 for the reduced rate). Don't just take 20% off. VAT was added to the net price, not the gross, so subtracting 20% of the total removes too much.
| Gross price | Net price | VAT at 20% |
|---|---|---|
| £12 | £10.00 | £2.00 |
| £60 | £50.00 | £10.00 |
| £100 | £83.33 | £16.67 |
| £500 | £416.67 | £83.33 |
| £1,000 | £833.33 | £166.67 |
UK VAT rates
- Standard rate 20%: most goods and services.
- Reduced rate 5%: some goods and services, such as children's car seats and gas for your home.
- Zero rate 0%: most food, books and newspapers, and children's clothes and shoes.
Always check HMRC guidance for how VAT applies to a specific product or service.
Frequently asked questions
How do I add 20% VAT to a price?
Multiply the net price by 1.2. For example, £100 plus VAT is £100 × 1.2 = £120, of which £20 is VAT.
How do I remove 20% VAT from a price?
Divide the gross price by 1.2. For example, £120 including VAT is £120 ÷ 1.2 = £100 before VAT, so the VAT is £20. A common mistake is to take 20% off the gross price, which gives the wrong answer (£96).
What is the VAT fraction?
At 20% VAT, the VAT included in a gross price is 1/6 of the total. At 5% VAT it is 1/21 of the total.
What are the UK VAT rates?
The standard rate is 20% and covers most goods and services. The reduced rate of 5% applies to things like children's car seats and some energy-saving materials. Some items, such as most food and children's clothes, are zero-rated (0%).
When does a business have to register for VAT?
A UK business must register for VAT when its VAT-taxable turnover goes over £90,000 in any rolling 12-month period, or is expected to in the next 30 days.
Last checked 5 October 2026.