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VAT / UK

VAT calculator

Add VAT to a price or remove it from a VAT-inclusive price at the UK standard (20%), reduced (5%) or zero rate.

Last verified: Methodology

Your details

01Price

What do you want to do?

Net price to add VAT to, or VAT-inclusive price to take it off.

VAT rate

Price including VAT

£120.00

£20.00 VAT at 20% added

VAT
£20.00
Excluding VAT
£100.00
VAT rate
20%
  • Adding VAT: net × 20%.
  • Amounts are rounded to the nearest penny.
  • Which rate applies depends on the goods or services. Some things are exempt from VAT (such as postage stamps and financial transactions), which is not the same as the zero rate.

Price including VAT: £120.00 £20.00 VAT at 20% added

VAT at the standard rate (20%)
LineAmount
Net (excluding VAT)£100.00
VAT at 20%£20.00
Gross (including VAT)£120.00

£120.00

£20.00 VAT at 20% added

How it's calculated

The UK has three VAT rates:GOV.UK

Rate%Applies to
Standard20%Most goods and services
Reduced5%Some goods and services, for example children's car seats and home energy
Zero0%For example most food and children's clothes

Some things are exempt from VAT altogether, such as postage stamps and financial and property transactions. Exempt is not the same as zero-rated.

The formula

  • Adding VAT to a net price: VAT = net × rate; gross = net + VAT.
  • Removing VAT from a VAT-inclusive price: net = gross ÷ (1 + rate); VAT = gross − net. At 20% that makes the VAT one sixth of the gross price; at 5% it is one twenty-first.

Results are rounded to the nearest penny.

Worked example

£100 plus VAT at the standard rate is £120.00, of which £20.00 is VAT.

Add 20% VAT to £100VAT / UK
LineAmount
Net (excluding VAT)£100.00
VAT at 20%£20.00
Gross (including VAT)£120.00

Taking the VAT off a £99.99 price leaves £83.33. A home energy bill of £105 including 5% VAT has £5.00 of VAT in it.

Remove 5% VAT from £105VAT / UK
LineAmount
Net (excluding VAT)£100.00
VAT at 5%£5.00
Gross (including VAT)£105.00

Assumptions and limitations

  • The calculator does not decide which rate applies to your goods or services; check HMRC's guidance on rates for specific goods and services.
  • VAT on invoices with many lines can differ by a penny or two from VAT on the total, depending on whether you round each line.
  • Flat Rate Scheme percentages, partial exemption and reverse charges are not covered.
FAQ

Questions people ask

What is the current VAT rate in the UK?

The standard rate of VAT in the UK is 20% and applies to most goods and services. It has been 20% since 4 January 2011, when it went up from 17.5%. There is also a reduced rate of 5% for some things, such as children's car seats and home energy, and a zero rate for things such as most food and children's clothes.

How do I work out VAT backwards from a total?

To take VAT off a price that already includes it, divide the total by 1 plus the VAT rate: by 1.2 for the standard rate or 1.05 for the reduced rate. That gives the price before VAT, and the difference is the VAT. A common mistake is to take 20% off the gross price, which removes too much. At 20%, the VAT is one sixth of the VAT-inclusive price.

How do I add VAT to a price?

Multiply the net price by the VAT rate to get the VAT, then add it on. At the standard rate that is the same as multiplying the net price by 1.2, and at the reduced rate by 1.05. Zero-rated goods have no VAT added, but they still count as taxable supplies for VAT registration and reporting, unlike exempt items.

What is the difference between zero-rated and exempt?

Zero-rated goods and services are taxable at a VAT rate of 0%, so no VAT is charged to the customer but a VAT-registered business can usually reclaim VAT on its related costs. Exempt items, such as postage stamps and many financial and property transactions, are outside the VAT charge altogether, and VAT on related costs often cannot be reclaimed.

Which items are charged VAT at 5%?

The reduced rate of 5% applies to a limited list of goods and services. GOV.UK gives children's car seats and home energy as examples. HMRC publishes detailed guidance on the VAT rate for each type of goods and services, and the rules can depend on how the item is supplied, so check that guidance before charging the reduced rate.

Sources

  1. GOV.UKVAT rates · retrieved 2026-10-16

Last verified: CalcBloc Editorial Team