UK VAT calculator

Add VAT to a net price, or take it out of a gross one — the second being where invoices go wrong.

Amount £ Rate amount includes VAT

Net (before VAT)	£100.00
VAT	£20.00
Gross (including VAT)	£120.00

Working: £120 ÷ 1.20 = £100 net · VAT = £120 − £100 = £20

The mistake that costs real money

Adding 20% means multiplying by 1.2 — but removing it means dividing by 1.2, not multiplying by 0.8. The 20% was charged on the smaller net figure, so undoing it against the larger gross figure over-removes. On £120: dividing gives the correct £100; multiplying by 0.8 gives £96, understating the net by £4 — and on a year of invoices that error compounds into a genuine VAT-return problem.

The formulas

Direction	Formula (rate R%)	At 20%
Add VAT to net	net × (1 + R÷100)	× 1.20
Remove VAT from gross	gross ÷ (1 + R÷100)	÷ 1.20
VAT element of gross	gross × R ÷ (100 + R)	× 1⁄6

The last row is the "VAT fraction" accountants use: at 20% it is exactly one sixth of the gross, because 20⁄120 = 1⁄6. At the 5% rate the fraction is 1⁄21.

UK VAT rates, plainly

Rate	Applies to
20% standard	Most goods and services. Unchanged since 4 January 2011.
5% reduced	Domestic gas and electricity, children's car seats, some energy-saving installations.
0% zero-rated	Most food, books and newspapers, children's clothes, public transport.
Exempt	Insurance, finance, postage stamps, most education and health. Exempt is not the same as zero-rated — it affects what a business can reclaim.

Item classifications have famous edge cases — the courts have ruled on Jaffa Cakes (cake: zero-rated) and marshmallows by size. For whether a specific item is standard, reduced, zero or exempt, check gov.uk's VAT rates guidance rather than assuming.

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The calculator runs entirely in your browser and works offline. This page sets no cookies and loads no third-party scripts.

Common questions

Do prices shown to consumers include VAT?

In the UK, prices displayed to consumers must include VAT. Business-to-business quotes are customarily net, with VAT added at invoice — always check which convention a quote uses before comparing.

I'm not VAT-registered — can I charge VAT?

No. Charging VAT without registration is unlawful. Below the registration threshold you simply invoice without VAT — and you cannot reclaim VAT on purchases either, unless you register voluntarily.

Does this calculator handle the registration threshold or VAT returns?

No — it does the arithmetic. The registration threshold (£90,000 of taxable turnover since April 2024) and return rules change with Budgets; confirm current figures on gov.uk. This page is a calculation aid, not tax advice.

Arithmetic verified by automated known-answer tests. Rate facts last checked against gov.uk: 14 August 2026 (standard rate 20% since 4 Jan 2011; registration threshold £90,000 since Apr 2024). If a Budget changes either, this line is the promise that we update it.

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