UK VAT Calculator

Add VAT to a net price, or work out the VAT already included in a gross price.

  • Free, updates instantly as you type
  • Standard, reduced, or custom rate
£0 total (VAT included)
Net amount
£0
VAT amount
£0

Standard and reduced rates shown are the commonly used UK VAT rates — always confirm the current rate for your specific goods or services with HMRC, since rates and exemptions can change.

Frequently asked questions

How do I remove VAT from a price?

Switch to "Remove VAT" and enter the VAT-inclusive (gross) price. The calculator divides by (1 + rate/100) to find the net amount, then shows the VAT portion separately.

What's the difference between reduced-rate and zero-rated?

Reduced-rate goods still carry VAT, just at a lower rate (5%). Zero-rated goods carry 0% VAT but are still technically "VAT-able" for accounting purposes, unlike VAT-exempt goods, which are outside the VAT system entirely.

Is this the same as a business's actual VAT return?

No — this is a simple price calculator, not a substitute for proper VAT accounting, which involves input/output VAT, thresholds, and scheme-specific rules.

How VAT is added and removed

VAT is a percentage of the net (pre-VAT) price. To add VAT, multiply the net price by 1 plus the rate: at 20%, net × 1.20. To remove it, divide the gross price by the same number: at 20%, gross ÷ 1.20.

A worked example

An item has a net price of £100. At the standard rate of 20%, VAT is £20 and the gross price is £120. Going the other way, from a gross price of £120, £120 ÷ 1.20 = £100 net, with £20 of VAT.

A common mistake: taking 20% off £120 gives £96, which is wrong, because the VAT was calculated on the net price, not the gross. The VAT in a gross price at 20% is exactly one sixth of it (20 ÷ 120); at the 5% rate it's one twenty-first (5 ÷ 105).

The three UK rates

  • 20% standard rate: applies to most goods and services.
  • 5% reduced rate: applies to a short list, such as domestic fuel and power and children's car seats.
  • 0% zero rate: applies to things like most food, children's clothing and books.

These rates have been stable for years, but the category lists are set by HMRC and can change, so confirm the rate for your goods or services on GOV.UK.

Zero-rated is not the same as exempt

A zero-rated sale is still a taxable sale, just charged at 0%, so a VAT-registered business can still reclaim the VAT on its related costs. An exempt sale is outside the VAT charge altogether, and a business making only exempt sales generally can't reclaim that VAT. The calculator's 0% option is for zero-rated sales.

Good to know

  • Consumers normally see prices with VAT included; invoices between businesses often show net prices and VAT separately.
  • This calculator is an aid for estimating prices and checking invoices. For VAT registration, returns and rules specific to your business, check GOV.UK or ask an accountant.

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