VAT Calculator UK

Q: How do I add 20% VAT to a price?

Multiply the net price by 1.2. A £100 net price becomes £120 including VAT, of which £20 is the VAT itself. The calculator does this for any rate — 1.05 for the 5% reduced rate, 1.0 for zero-rated items.

Q: What is the UK VAT standard rate?

The standard rate is 20% and has been since 4 January 2011. It applies to most goods and services. A reduced rate of 5% covers items like domestic energy and children's car seats, and a zero rate of 0% covers most food, books and children's clothing.

Q: When must a business register for VAT?

Once VAT-taxable turnover passes £90,000 in any rolling 12-month period (the threshold since 1 April 2024). Below it, registration is voluntary — some businesses register early to reclaim VAT on purchases, others stay out to keep prices simple.

This vat calculator uk tool adds or removes VAT at the UK rates: enter an amount, pick a direction and a rate — 20% standard, 5% reduced or 0% zero — and it shows the net price, the VAT and the gross price, with the arithmetic visible.

Calculate VAT

Amount excluding VAT (£)

Direction

VAT rate (%)

£120 including VAT

Net £100 · VAT £20 at 20% · gross £120

Standard rate 20% applies to most goods and services; 5% and 0% cover specific items only — check the item's rating on GOV.UK before invoicing. This calculator does not decide whether you must register for VAT (threshold £90,000 of taxable turnover).

How VAT is calculated

Adding VAT is multiplication: net × 1.2 at the standard rate, so £100 net becomes £120 gross with £20 of VAT. Removing it is division: gross ÷ 1.2, so £120 gross is £100 net — and the VAT fraction shortcut (gross ÷ 6 at 20%) gives the same £20 directly. The trap is applying the rate to the wrong base: 20% of the gross price is not the VAT, because the VAT was added to the net. A £120 price does not contain £24 of VAT; it contains £20, because £100 × 1.2 = £120, not £96 × 1.25.

Quick reference (standard rate, 20%)

£50 net — £10 VAT — £60 gross
£100 net — £20 VAT — £120 gross
£120 gross — £20 VAT — £100 net
£240 gross — £40 VAT — £200 net

Not everything is standard-rated: check whether an item is reduced-rated, zero-rated or exempt on GOV.UK before invoicing, and remember the calculator cannot decide your registration position — the £90,000 taxable-turnover threshold does that.

vat calculator questions

How do I add 20% VAT to a price?

Multiply the net price by 1.2. A £100 net price becomes £120 including VAT, of which £20 is the VAT itself. The calculator does this for any rate — 1.05 for the 5% reduced rate, 1.0 for zero-rated items.

How do I remove VAT from a price?

Divide the gross price by 1.2 at the standard rate — or, equivalently, divide by 6 to get the VAT fraction. A £120 VAT-inclusive price is £100 net with £20 of VAT. At 5%, divide by 1.05 instead.

What is the UK VAT standard rate?

The standard rate is 20% and has been since 4 January 2011. It applies to most goods and services. A reduced rate of 5% covers items like domestic energy and children's car seats, and a zero rate of 0% covers most food, books and children's clothing.

When must a business register for VAT?

Once VAT-taxable turnover passes £90,000 in any rolling 12-month period (the threshold since 1 April 2024). Below it, registration is voluntary — some businesses register early to reclaim VAT on purchases, others stay out to keep prices simple.

Is VAT included in shop prices?

Usually yes for consumers: VAT is normally included in the price you see in shops. Business-to-business quotes are the common exception — they often show prices excluding VAT, which is exactly when this calculator earns its keep.

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Sources & official guidance

Estimate only — not tax advice. See our disclaimer.