UK VAT Calculator — Add or Remove VAT
Add VAT to a net price or take VAT out of a gross price at the UK standard (20%), reduced (5%) or zero rate, with the formula shown for every result.
£100.00 × (1 + 20%) = £120.00
Breakdown
| Item | Amount |
|---|---|
| Net price (excluding VAT) | £100.00 |
| VAT at 20%20% on £100.00 | £20.00 |
| Gross price (including VAT) | £120.00 |
Assumptions
- VAT = net × rate; gross = net × (1 + rate).
- VAT is shown to the penny. On invoices, VAT may be rounded per line or per invoice — use one method consistently.
How this was calculated
| UK VAT rate | Typical examples |
|---|---|
| Standard 20% | Most goods and services |
| Reduced 5% | Domestic fuel and power, children’s car seats, mobility aids for older people |
| Zero 0% | Most food, children’s clothes, books and newspapers |
| Exempt | Insurance, most financial services, some education and health |
Add VAT: VAT = net × rate gross = net × (1 + rate) Remove VAT: net = gross ÷ (1 + rate) VAT = gross − net
£250 + 20% VAT = £300.00. Taking VAT out of £250: £250 ÷ 1.2 = £208.33, so the VAT is £41.67 — not 20% of £250.
Zero-rated vs exempt
Both show no VAT on the price, but they are treated differently. Zero-rated sales are taxable at 0%: they count towards the £90,000 registration threshold and you can reclaim VAT on related costs. Exempt sales are outside VAT: they do not count towards the threshold and the VAT on related costs usually cannot be reclaimed.
Official sources
Rule review
Results are estimates for general information, not personalised tax, legal or financial advice. See our methodology and disclaimer.
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