VAT Calculator
Add VAT to a price or take it off, at the UK standard rate of 20%, the reduced rate of 5%, or any rate you choose.
Your price
VAT formulas
| You want to… | Formula (20%) | Example |
|---|---|---|
| Add VAT | Net × 1.2 | £50 → £60 |
| Find the VAT in a net price | Net × 0.2 | £50 → £10 |
| Remove VAT | Gross ÷ 1.2 | £60 → £50 |
| Find the VAT in a gross price | Gross ÷ 6 | £60 → £10 |
For 5% VAT use 1.05 instead of 1.2, and divide a gross price by 21 to find the VAT in it.
UK VAT rates
- Standard rate – 20%: most goods and services.
- Reduced rate – 5%: domestic gas and electricity, children’s car seats, some energy-saving work.
- Zero rate – 0%: most food, books and newspapers, children’s clothes and shoes.
The most common VAT mistake
People often remove VAT by knocking 20% off the gross price. That is wrong, because the 20% was added to the smaller net figure. On a £120 invoice, 20% off gives £96, but the real net price is £100. This calculator always uses the correct method.
For guidance only. Check HMRC’s VAT guidance for the correct rate on specific goods and services.
Guide: when do you need to register for VAT?
Guide: how to remove VAT from a price
Sources
Figures are checked against these official sources. Last reviewed 7 November 2026.
Common questions
How do I remove 20% VAT from a price?
Divide the price by 1.2. For example £120 ÷ 1.2 = £100, so the VAT is £20. Do not just take 20% off the gross price – that gives the wrong answer (£96).
How do I add 20% VAT?
Multiply the net price by 1.2. For example £250 × 1.2 = £300, of which £50 is VAT.
What is the current VAT rate in the UK?
The standard rate is 20%. A reduced rate of 5% applies to things like home energy and children’s car seats, and some items such as most food and children’s clothes are zero-rated.
When does a business have to register for VAT?
You must register if your VAT-taxable turnover goes over £90,000 in any rolling 12-month period, or you expect it to in the next 30 days.
What is the difference between zero-rated and exempt?
Zero-rated goods are VATable at 0%, so the business can still reclaim VAT on its costs. Exempt goods and services (such as most insurance and education) are outside VAT altogether.