UK VAT Calculator – Add or Remove VAT Instantly
Add VAT to a net amount or strip it back out of a gross total at the UK rates of 20%, 5% or 0% — results update as you type.
Net amount (to add VAT) or gross amount (to remove VAT).
Gross amount (inc. VAT)
£120.00
- Net amount (excl. VAT)
- £100.00
- VAT to add
- £20.00
VAT calculated at 20%.
For informational purposes only — not financial or tax advice.
How the UK VAT calculator works
The tool runs both directions. Adding VAT takes a net price and applies the rate on top. Removing VAT (reverse VAT) starts from a gross price that already contains VAT and works backwards to the net amount and the VAT it contains. Both directions use plain multiplication and division, so you can verify every number by hand.
Formula: adding VAT
gross = net × (1 + rate) VAT = net × rate
At the standard 20% rate, £100 net becomes £100 × 1.20 = £120 gross, of which £20 is VAT.
Formula: removing VAT (reverse)
net = gross ÷ (1 + rate) VAT = gross − net
A £120 gross receipt at 20% contains £120 ÷ 1.20 = £100 net and £20 VAT. A common mistake is to take 20% of the gross total — that overstates the VAT because the rate applies to the smaller net figure.
UK VAT rates at a glance
- 20% standard rate — most goods and services.
- 5% reduced rate — domestic energy, some energy-saving materials and children’s car seats.
- 0% zero rate — most food, books, newspapers and children’s clothing. Zero-rated is not the same as VAT-exempt: exempt items such as insurance and education carry no VAT but also give no input-tax credit.
Businesses usually quote prices excluding VAT, while consumers see VAT-inclusive prices, which is exactly why both directions matter. VAT registration is required once taxable turnover passes the HMRC threshold (£90,000 in a rolling 12 months as of 2024 — confirm the current figure on GOV.UK).
Worked examples
- Invoicing a client: you charge £2,000 net at 20%. VAT = £2,000 × 0.20 = £400, so the invoice total is £2,400.
- Taking VAT out of takings: your till shows £6,000 gross at 20%. Net = £6,000 ÷ 1.20 = £5,000, so £1,000 of your takings is VAT owed to HMRC.
- Reduced rate: a £300 (gross) domestic energy bill at 5% contains £300 ÷ 1.05 = £285.71 net and £14.29 VAT.
Frequently asked questions
What is the standard VAT rate in the UK?
The standard UK VAT rate is 20%. A reduced rate of 5% applies to things like domestic energy, and some goods such as most food, children's clothing and books are zero-rated.
How do I calculate VAT backwards from a gross amount?
Divide the gross amount by 1 plus the VAT rate. For a 20% rate, divide by 1.20. For example, £120 gross ÷ 1.20 = £100 net, so the VAT contained is £20. This is often called reverse VAT or removing VAT.
How do I add VAT to a net price?
Multiply the net amount by the VAT rate and add it on. At 20%, a £100 net price becomes £100 + £20 VAT = £120 gross. The calculator does this instantly as you type.
Do all goods and services in the UK include VAT?
No. Most goods and services include VAT, but some are zero-rated (0%), such as most food, books and children's clothes, while others like insurance and education are VAT-exempt.
When must a UK business register for VAT?
You must register for VAT once your VAT-taxable turnover goes over the HMRC threshold, which is £90,000 in a rolling 12-month period as of 2024. Check GOV.UK for the current figure before relying on it.