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VAT calculator

Add VAT to a net price or strip it out of a gross one, at 20%, 5%, zero or any custom rate, with the whole breakdown laid out.

Guide

How to use it

  1. Type the amount and tell it what that amount is: net (Add VAT) or gross (Remove VAT).
  2. Pick the rate. 20% covers most goods and services; 5% and zero have their own categories; custom handles anything else.
  3. Read the three tiles, the highlighted one is the answer to your question, and the formula line shows the working.
  4. Checking a supplier invoice backwards? The reverse VAT page starts in remove mode.

Examples

Worked examples

Quoting a job

Your day rate is £350 net. Add VAT: 350 × 1.2 = £420 on the invoice, £70 of it VAT you collect for HMRC.

Reclaiming on a receipt

A £96 fuel receipt, VAT included. Remove VAT: 96 ÷ 1.2 = £80 net, so £16 is reclaimable input VAT.

The 5% energy rate

A £231 home energy bill at the reduced rate: 231 ÷ 1.05 = £220 net, £11 VAT. Domestic fuel uses 5%, not 20%.

Method

How it works

Adding VAT multiplies the net by (1 + rate ÷ 100). Removing it divides the gross by the same factor, the step people get wrong by subtracting the percentage instead, which overstates the VAT because the tax was charged on the net, not the gross.

Rates are as published at 8 August 2026 and kept as one editable constant in the page code. This is arithmetic, not advice on which rate applies, and nothing you type leaves your browser.

FAQ

Frequently asked questions

How do I add VAT to a price?

Multiply the net amount by 1.2 for 20% VAT. £120 net becomes £144 gross, of which £24 is VAT.

How do I remove VAT from a gross amount?

Divide by 1.2, never subtract 20%. £120 gross is £100 net plus £20 VAT. Subtracting 20% of the gross gives the wrong answer because the VAT was charged on the net.

What are the current UK VAT rates?

20% standard, 5% reduced (home energy, some safety products) and 0% zero rate (most food, books, children's clothes). As published at 8 August 2026, verify current rates at gov.uk.

When must a business register for VAT?

When taxable turnover passes the registration threshold in a rolling 12 months. The threshold changes at Budgets, so check the current figure at gov.uk rather than trusting any calculator page.

Is zero-rated the same as exempt?

No. Zero-rated sales are taxable at 0%, count towards the registration threshold and allow input VAT recovery. Exempt sales (insurance, postage stamps) sit outside the system.

Is this calculator tax advice?

No, it is arithmetic on the rate you choose. Which rate applies to a given sale can be genuinely subtle, that is a question for HMRC guidance or an accountant.

More tools

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Reverse VAT calculatorBack the VAT out of any gross figure. Flat rate VAT calculatorHMRC sector percentages and what you keep. Percentage calculatorThe same maths for anything that is not VAT. Compound interestWhere the business savings could be growing.
Skip to the tool

VAT calculator

Add VAT to a net price or strip it out of a gross one, at 20%, 5%, zero or any custom rate, with the whole breakdown laid out.

Rate
£120.00 Net (before VAT)
£24.00 VAT at 20%
£144.00 Gross (with VAT)

120.00 × (1 + 20 ÷ 100) = 144.00

UK rates as published at 8 August 2026. Check current rates and your own position at gov.uk, this is arithmetic, not tax advice.

Everything runs in your browser. Nothing you enter is sent to a server.

Guide

How to use it

  1. Type the amount and tell it what that amount is: net (Add VAT) or gross (Remove VAT).
  2. Pick the rate. 20% covers most goods and services; 5% and zero have their own categories; custom handles anything else.
  3. Read the three tiles, the highlighted one is the answer to your question, and the formula line shows the working.
  4. Checking a supplier invoice backwards? The reverse VAT page starts in remove mode.

Examples

Worked examples

Quoting a job

Your day rate is £350 net. Add VAT: 350 × 1.2 = £420 on the invoice, £70 of it VAT you collect for HMRC.

Reclaiming on a receipt

A £96 fuel receipt, VAT included. Remove VAT: 96 ÷ 1.2 = £80 net, so £16 is reclaimable input VAT.

The 5% energy rate

A £231 home energy bill at the reduced rate: 231 ÷ 1.05 = £220 net, £11 VAT. Domestic fuel uses 5%, not 20%.

Method

How it works

Adding VAT multiplies the net by (1 + rate ÷ 100). Removing it divides the gross by the same factor, the step people get wrong by subtracting the percentage instead, which overstates the VAT because the tax was charged on the net, not the gross.

Rates are as published at 8 August 2026 and kept as one editable constant in the page code. This is arithmetic, not advice on which rate applies, and nothing you type leaves your browser.

FAQ

Frequently asked questions

How do I add VAT to a price?

Multiply the net amount by 1.2 for 20% VAT. £120 net becomes £144 gross, of which £24 is VAT.

How do I remove VAT from a gross amount?

Divide by 1.2, never subtract 20%. £120 gross is £100 net plus £20 VAT. Subtracting 20% of the gross gives the wrong answer because the VAT was charged on the net.

What are the current UK VAT rates?

20% standard, 5% reduced (home energy, some safety products) and 0% zero rate (most food, books, children's clothes). As published at 8 August 2026, verify current rates at gov.uk.

When must a business register for VAT?

When taxable turnover passes the registration threshold in a rolling 12 months. The threshold changes at Budgets, so check the current figure at gov.uk rather than trusting any calculator page.

Is zero-rated the same as exempt?

No. Zero-rated sales are taxable at 0%, count towards the registration threshold and allow input VAT recovery. Exempt sales (insurance, postage stamps) sit outside the system.

Is this calculator tax advice?

No, it is arithmetic on the rate you choose. Which rate applies to a given sale can be genuinely subtle, that is a question for HMRC guidance or an accountant.

More tools

Related tools