UK Tools

Finance & Money

UK VAT Calculator

Rates & guidance reviewed

Value Added Tax (VAT) is charged on most goods and services in the UK. Whether you are pricing a quote, checking an invoice, or converting a VAT-inclusive total back to net, a clear net / VAT / gross split saves time and avoids mistakes.

This free UK VAT calculator supports the standard 20% rate, the reduced 5% rate, zero-rating, and a custom percentage. Choose add VAT, remove VAT from a gross figure, or show the VAT amount alone. Everything runs in your browser.

It does not model flat-rate schemes, margin schemes, partial exemption or place-of-supply rules. For registration thresholds and special schemes, always check current HMRC guidance.

Interactive tool

UK VAT rates · standard 20%, reduced 5%, zero 0%

Most goods and services are standard-rated. Some items are reduced or zero-rated. This tool does simple add / remove maths — not partial exemption, flat rate or margin schemes.

Applied rate

20%

Add VAT to net amount

VAT amount£20.00
Net (ex VAT)£100.00
Gross (inc VAT)£120.00
Rate used20%

For guidance only. VAT registration, special schemes and exceptions are not covered — check HMRC guidance for your situation.

How to use this tool

  1. Pick Add VAT, Remove VAT, or VAT only.
  2. Enter the net amount (or gross amount if removing VAT).
  3. Select 20%, 5%, 0% or a custom rate.
  4. Read net, VAT and gross results and copy them if needed.

Worked examples

Static sample calculations you can read without using the form. Figures match this tool's maths — always re-run with your own numbers for a personal estimate.

£100 net · add 20%

The default: standard-rate VAT on a net amount.

Inputs

Mode
Add VAT
Net amount
£100
Rate
20% standard

Results

VAT
£20.00
Net (ex VAT)
£100.00
Gross (inc VAT)
£120.00

Gross = net × 1.20. Same figures as the written VAT guide.

£120 gross · remove 20%

Strip standard-rate VAT from a VAT-inclusive price.

Inputs

Mode
Remove VAT
Gross amount
£120
Rate
20% standard

Results

VAT
£20.00
Net (ex VAT)
£100.00
Gross (inc VAT)
£120.00

Divide by 1.20. Do not subtract 20% of £120 (£24) — that overstates the VAT by £4.

£2,400 gross · remove 20%

The same divide-by-1.20 step on an invoice.

Inputs

Mode
Remove VAT
Gross amount
£2,400
Rate
20% standard

Results

VAT
£400.00
Net (ex VAT)
£2,000.00
Gross (inc VAT)
£2,400.00

VAT is one-sixth of the inclusive price (2,400 × 1/6). Subtracting 20% would wrongly claim £480.

£100 net · 5% vs 0%

Reduced rate and zero rate on the same net amount.

Inputs

Mode
Add VAT
Net amount
£100

Results

5% VAT / gross
£5.00 / £105.00
0% VAT / gross
£0.00 / £100.00

0% is zero-rate arithmetic, not an exemption test. Custom 12.5% on £200 net is £25 VAT and £225 gross.

UK VAT rates in plain English

The standard rate of VAT in the UK is 20% for most taxable supplies. A reduced rate of 5% applies to some goods and services (GOV.UK’s examples include children’s car seats and home energy — categories change, so check HMRC lists). Zero-rated supplies are taxable at 0% (you may still need to show them on VAT returns if you are registered). Exempt supplies are a different legal box, not a 0% calculation.

To add VAT to a net price: gross = net × (1 + rate). To extract VAT from a VAT-inclusive price: net = gross ÷ (1 + rate), and VAT = gross − net. Using division (not multiplying by 20% of the gross) is the correct way to remove standard-rate VAT.

How the VAT maths works

At 20%, VAT is one-sixth of a VAT-inclusive price (the VAT fraction: gross × 20 ÷ 120). At 5% it is 1/21. A longer walk-through of this model, the £100 → £120 default, why subtracting 20% of £120 is wrong, reduced versus zero-rated versus exempt, and the £90,000 registration threshold is in the written VAT guide.

Official sources & further reading

Always confirm rates, bands and eligibility on official pages. Our tools are simplified estimators for guidance only.

Frequently asked questions

How do I add 20% VAT?
Multiply the net amount by 0.20 for the VAT, or by 1.20 for the gross total. Example: £100 net → £20 VAT → £120 gross. The written VAT guide walks through that default and the divide-by-1.20 reverse.
How do I remove VAT from a gross price?
Divide the gross amount by 1.20 for standard-rated VAT (or 1.05 for 5%). Do not simply subtract 20% of the gross — that overstates the VAT. £120 inclusive is £100 net, not £96.
Is everything charged at 20%?
No. Some supplies are reduced-rated, zero-rated or exempt. Use the correct rate for the supply and check HMRC if unsure.
Does this handle VAT registration?
No. It only does price maths. The current registration threshold is £90,000 of taxable turnover — confirm on GOV.UK. Special schemes are not modelled.
Is my data stored?
No. All calculations run in your browser only.

Read the explainer

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