VAT Calculator
UK VAT is typically charged at 20%. To add VAT, multiply the net price by 1.20. To remove VAT, divide the gross price by 1.20.
How UK VAT works
Choose a VAT rate, enter an amount, then calculate.
Related: Sales Tax · Discount Calculator
How the VAT calculator works
UK VAT is charged at three rates: the standard rate of 20% applies to most goods and services; the reduced rate of 5% covers items such as domestic fuel and power, children's car seats, and some energy-saving materials; and the zero rate of 0% applies to most food, books, newspapers, children's clothing, and prescription medicines. Zero-rated supplies are still technically VAT-taxable, which matters for businesses reclaiming input VAT.
The most common mistake when working with VAT is removing it by subtracting 20% from the gross price — this is wrong. To remove VAT correctly, divide the gross price by 1.20 (for standard rate). For example, £120 gross ÷ 1.20 = £100 net. To add VAT, multiply the net price by 1.20: £100 net × 1.20 = £120 gross.
Businesses must register for VAT once their taxable turnover exceeds £90,000 in any rolling 12-month period (the threshold for 2024/25). Once registered, businesses charge VAT on their sales (output VAT) and can reclaim VAT paid on eligible purchases (input VAT), paying the net difference to HMRC.
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by 1.20 for the standard 20% rate. For example, a net price of £100 becomes £120 gross (£100 × 1.20 = £120). For the reduced 5% rate, multiply by 1.05 instead.
How do I remove VAT from a price?
Divide the gross price by 1.20 to get the net price for the standard rate. For example, £120 gross ÷ 1.20 = £100 net. Do not subtract 20% from the gross price — that calculation gives the wrong answer (£120 − 20% = £96, not £100).
What items are exempt from VAT in the UK?
Most food, books, newspapers, children's clothing, and prescription medicines are zero-rated (0% VAT). Some financial services, insurance, education, and health services are VAT-exempt — a different category meaning no VAT is charged and input VAT generally cannot be reclaimed.
What is the VAT registration threshold?
Businesses must register for VAT when their taxable turnover exceeds £90,000 in any rolling 12-month period (the 2024/25 threshold). Once registered, you must charge VAT on sales and submit regular VAT returns to HMRC.