UK VAT Calculator
Add VAT to a net price or remove VAT from a VAT-inclusive amount. See the net, VAT and gross figures instantly.
Add or remove VAT
Enter an amount, choose the direction, then select the VAT rate.
Uses current UK VAT rates published by GOV.UK. Checked 10 September 2026.
Price including VAT
£100.00 + 20% VAT = £120.00
- Net amount
- £100.00
- VAT amount (20%)
- £20.00
- Gross amount
- £120.00
VAT maths
VAT is calculated from the net amount, then added to produce the gross total.
How to add and remove VAT
UK VAT is calculated from the net price — the amount before VAT. At the standard 20% rate, adding VAT means multiplying the net price by 1.20. Working backwards from a VAT-inclusive price means dividing the gross price by 1.20.
How to add VAT
Gross = Net × (1 + VAT rate). At 20%, £100 × 1.20 = £120. The VAT is £20 and the gross, VAT-inclusive amount is £120.
How to remove VAT
Net = Gross ÷ (1 + VAT rate). At 20%, £120 ÷ 1.20 = £100. The VAT contained in the £120 gross amount is £20.
Why removing 20% is not the same as subtracting 20%
If £100 has 20% VAT added, the result is £120. The original 20% was calculated from £100, not from £120. Subtracting 20% from £120 gives £96, so it cannot reverse the original calculation. Dividing £120 by 1.20 correctly returns £100.
Current UK VAT rates
The UK currently has three VAT rates. Which rate applies depends on the goods or services and the circumstances of the supply.
| Rate | VAT | Typically applies to |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced | 5% | Some goods and services, including children’s car seats and home energy |
| Zero rate | 0% | Zero-rated goods and services, including most food and children’s clothes |
Rates last checked 10 September 2026 against GOV.UK VAT rates. The correct VAT treatment can depend on detailed conditions, so check the official guidance if you are unsure.
VAT-inclusive, VAT-exclusive, zero-rated and exempt
VAT inclusive vs VAT exclusive
Net or VAT-exclusive means the price before VAT. The VAT amount is the tax added to that net figure. Gross or VAT-inclusive means the final amount after VAT has been added.
Zero-rated is not the same as VAT exempt
A zero-rated supply is still a taxable supply, but VAT is charged at 0%. An exempt supply is not taxed in the same way and is not the same as applying a 0% VAT rate. This distinction can affect VAT registration and whether VAT on related business costs can be reclaimed.
See GOV.UK guidance on VAT exemption and partial exemption for the formal distinction.
UK VAT registration threshold
You must generally register for VAT if your total taxable turnover for the last 12 months goes over £90,000, or if you expect your taxable turnover to go over £90,000 in the next 30 days. Taxable turnover includes standard-, reduced- and zero-rated supplies, but not exempt or out-of-scope supplies.
Check the current rules and deadlines on GOV.UK: Register for VAT.
This calculator works backwards from a gross amount to show the net value and VAT contained in it. The VAT reverse charge is a separate accounting rule where, for specified supplies, the customer rather than the supplier accounts for VAT. This site does not calculate reverse-charge transactions.
If you are working with Construction Industry Scheme payments, use our UK CIS Deduction Calculator to handle CIS deductions, qualifying direct materials and VAT or reverse-charge treatment together.
Worked VAT examples
Common amounts using the current 20% standard VAT rate.
| Net | VAT | Gross |
|---|---|---|
| £50.00 | £10.00 | £60.00 |
| £100.00 | £20.00 | £120.00 |
| £250.00 | £50.00 | £300.00 |
| £500.00 | £100.00 | £600.00 |
| £1,000.00 | £200.00 | £1,200.00 |
UK VAT calculator questions
How do I add 20% VAT?
Multiply the VAT-exclusive amount by 1.20. For example, £250 × 1.20 = £300, made up of £250 net plus £50 VAT.
How do I remove 20% VAT?
Divide the VAT-inclusive amount by 1.20. For example, £300 ÷ 1.20 = £250 net. The VAT contained in the £300 total is £50.
What is the UK VAT rate?
The current standard UK VAT rate is 20%. A reduced 5% rate and a 0% zero rate apply to qualifying goods and services. The applicable rate depends on what is being supplied and the circumstances.
How much VAT is in £120?
If £120 is a gross amount that includes 20% VAT, the net amount is £100 and the VAT contained in the total is £20.
Why do I divide by 1.2 to remove 20% VAT?
Adding 20% turns a net amount into 120% of itself, or 1.2 times the original. Dividing the gross amount by 1.2 reverses that multiplication.
Is zero-rated VAT the same as exempt?
No. Zero-rated supplies are taxable supplies charged at 0%. Exempt supplies are not the same as 0%-rated supplies and can be treated differently for VAT registration and input-tax recovery.
What is the VAT registration threshold?
The current registration threshold is £90,000 of taxable turnover. Registration is generally required if taxable turnover over the last 12 months goes above that amount, or if you expect it to go above £90,000 in the next 30 days.
Is removing VAT the same as the VAT reverse charge?
No. “Remove VAT” here is simply a backwards calculation from gross to net. The VAT reverse charge is an accounting mechanism that changes who accounts for VAT on specified transactions.
Need more detail? Read our methodology and official sources. Or browse more free UK business tools from Klamic.