How do I add VAT to a price?

Multiply the net price by 1.2 for standard rate VAT. For example, an item costing £100 before VAT becomes £120 including VAT. For reduced rate items at 5%, multiply by 1.05 instead.

How do I remove VAT from a price?

Divide the gross price by 1.2 to get the price without standard rate VAT. For example, if something costs £120 including VAT, divide by 1.2 to get the net price of £100. The VAT portion is £20.

What is the current UK VAT rate?

The standard UK VAT rate is 20% and has been since January 2011. There is also a reduced rate of 5% for certain goods like domestic energy and a zero rate for essentials such as most food, children's clothing and books.

When do I need to register for VAT?

You must register for VAT when your taxable turnover exceeds £90,000 in any 12-month period. You can also register voluntarily below this threshold, which can be beneficial if you sell mainly to VAT-registered businesses.

VATCALCULATOR

Add or remove VAT instantly. Works with standard (20%), reduced (5%) and zero-rated items. Perfect for invoices, expenses and Making Tax Digital returns.

Calculation Mode

VAT Rate

Parameters

Amount (excl. VAT)

About UK VAT Rates

Standard Rate (20%)

The standard VAT rate of 20% applies to most goods and services in the UK. This covers everything from electronics and clothing (adult sizes) to professional services and restaurant meals.

Reduced Rate (5%)

A reduced rate of 5% applies to certain goods and services including domestic fuel and power, child car seats, smoking cessation products, and some energy-saving installations.

Zero Rate (0%)

Zero-rated goods are still technically VAT-taxable, but the rate is 0%. This includes most food and drink, books and newspapers, children's clothing and shoes, and public transport.

VAT rates are set by HMRC and apply across the United Kingdom. Some goods and services are exempt from VAT entirely, which is different from zero-rated. Always check HMRC guidance for specific items.

What Is VAT, Exactly?

VAT stands for Value Added Tax, and it's basically a tax that gets added to most things you buy in the UK. If you've ever looked at a receipt and wondered why the total was higher than expected, VAT is usually the reason. The standard rate is 20%, which means for every £100 you spend, £20 goes to the government as tax. It's been at 20% since January 2011. Businesses collect it on behalf of HMRC and then pass it along — so if you're running a business, you're essentially a tax collector whether you like it or not. The good news is that if you're VAT-registered, you can claim back the VAT you pay on business purchases, which is why understanding VAT matters so much when you're managing your own books.

How to Use This Calculator

Whether you're putting together an invoice, checking an expense receipt, or working out what your client actually owes you, this calculator has you covered.

Enter Your Amount

Type in the amount you're working with. If you know the price before VAT, you'll want to add VAT. If you've got a total that already includes VAT, you'll want to remove it to find the net figure.

Choose Add or Remove

Pick 'Add VAT' when you have a net price and need the gross total — handy for creating invoices. Pick 'Remove VAT' when you have a VAT-inclusive price and need to know the net amount and VAT portion — useful for expense claims.

Select the VAT Rate

Most things are at 20%, but if you're dealing with domestic energy bills, child car seats or similar items, choose 5%. For food, books or children's clothes, the rate is 0%.

The VAT Formulas

Add VAT: Gross = Net × 1.20 | Remove VAT: Net = Gross ÷ 1.20

To add standard VAT, multiply by 1.20. So a £100 invoice becomes £120 including VAT. To strip VAT from a price, divide by 1.20 — a £120 receipt means the net amount was £100 and the VAT was £20. For the 5% reduced rate, use 1.05 instead of 1.20. A quick shortcut for finding just the VAT on a gross amount at 20%: divide by 6. For example, £1,200 divided by 6 gives you £200 of VAT.

Tips & Best Practices

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You must register for VAT once your taxable turnover hits £90,000 in any rolling 12-month period — keep an eye on this, because HMRC charges penalties for late registration
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If you sell mainly to other VAT-registered businesses, voluntary registration can actually save you money since you can reclaim VAT on your purchases
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Making Tax Digital (MTD) means you need compatible software to file your quarterly VAT returns — spreadsheets alone won't cut it anymore
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Always check whether something is zero-rated, reduced-rate, or exempt before charging VAT — getting this wrong on invoices creates headaches down the line
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Keep your VAT receipts for at least 6 years — HMRC can ask to inspect them at any point during that window

Frequently Asked Questions

Mandeep Singh · 25+ Years UK Financial Services

Important Information

This calculator is for informational purposes only and does not constitute financial advice or a personal recommendation.

Results are estimates based on the information you provide and may not reflect your actual financial position.

You should consider seeking independent professional advice tailored to your specific circumstances before making any financial decision.