UK VAT Calculator — Add or Remove VAT
Add VAT to a net price or remove VAT from a gross total at the UK 20%, 5% or 0% rate, with the net, VAT and gross amounts to the penny.
Use this to add VAT to a net price or take VAT out of a VAT-inclusive total at the UK rates: 20% standard, 5% reduced and 0% zero rate. It shows the net amount, the VAT and the gross amount to the penny, plus the same figure at every rate so you can compare quotes, invoices and receipts.
How to use this tool
- Type the amount.
- Choose Add VAT if the amount excludes VAT, or Remove VAT if it already includes it.
- Pick the VAT rate that applies to the goods or service.
- Read the net, VAT and gross figures, and the comparison table.
Formula
Add: VAT = net × rate ÷ 100. Remove: VAT = gross × rate ÷ (100 + rate)
For the 20% rate the VAT share of a gross price is 20/120 = 1/6; for 5% it is 5/105 = 1/21. Net = gross − VAT, gross = net + VAT. VAT is rounded to the nearest penny.
Example
A tradesperson quotes £850 + VAT at 20%: VAT is £850 × 0.20 = £170, so the customer pays £1,020. Working backwards, a £1,020 receipt at 20% contains £1,020 ÷ 6 = £170 of VAT. A £63 home-energy bill at 5% includes £63 ÷ 21 = £3 of VAT, leaving £60 net.
Frequently asked questions
Why can't I just take 20% off the gross price?
The 20% was added to the net price, so VAT is one sixth of the gross, not one fifth. Taking 20% off £120 gives £96, but the correct net price is £100.
What is charged at the 5% reduced rate?
GOV.UK gives home energy and children's car seats as examples. Check HMRC's rates guidance for a specific product or service.
What is the difference between zero-rated and exempt?
Zero-rated goods, such as most food and children's clothes, are VAT-able at 0%. Exempt items, such as postage stamps and most financial and property transactions, are outside VAT altogether.
When does a business have to register for VAT?
When taxable turnover for the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days alone.
Sources
This tool gives an estimate for general information only. It is not financial, tax, legal or medical advice — check with a qualified professional before you rely on the result.
Last updated: 2026