VAT Calculator UK
Add or Remove VAT at 20%, 5% or 0%
Add VAT to a net price or take it out of a gross one — at the 20% standard rate, 5% reduced rate or 0% — with the working shown.
Read the full answer — method, rates and figures
Quick answer: The standard rate of VAT in the UK is 20%. To add VAT, multiply the net price by 1.2: £100.00 becomes £120.00.
To remove VAT from a price that includes it, divide by 1.2 — the VAT is one-sixth of the gross price, so £120.00 contains £20.00 VAT on £100.00. Don't take 20% off a VAT-inclusive price: that removes too much.
The reduced rate is 5% (VAT = gross ÷ 21, e.g. £5.00 in £105.00), and zero-rated goods such as most food and children's clothes carry 0%. Businesses must register once taxable turnover goes over £90,000 in 12 months.
Source: GOV.UK, checked 25 September 2026.
How do you work out VAT?
Add 20% VAT: × 1.2. Remove it: ÷ 1.2 — the VAT in £120.00 is £20.00.
VAT
£20.00
Net (excl. VAT)
£100.00
Gross (incl. VAT)
£120.00
VAT rate
20%
£120.00 including VAT at 20%: net £100.00 + VAT £20.00 = gross £120.00.
Save your VAT figures
Richify keeps your money in one view, so you can see what your spending and income add up to over time.
VAT
£20.00
Net (excl. VAT)
£100.00
Gross (incl. VAT)
£120.00
VAT rate
20%
Paying your own electricity bill? See what the move to 0% saves in the electricity VAT calculator. Self-employed and near the threshold? Check Making Tax Digital and your dividend tax if you run a limited company.
Last reviewed 13 October 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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Adding VAT: net × (1 + rate). Removing VAT: net = gross ÷ (1 + rate), VAT = gross × rate ÷ (1 + rate) — one-sixth at 20%, one twenty-first at 5%. Rates and the £90,000 registration threshold from GOV.UK's VAT rates and Register for VAT guides, checked 25 September 2026. Which rate applies depends on the goods or service — HMRC publishes the full list.
How to use this calculator
- Enter an amount.
- Choose whether it includes VAT (remove) or not (add).
- Pick the VAT rate: 20%, 5% or 0%.
- Read the VAT and the net and gross prices.
❓ Frequently Asked Questions
How do I calculate VAT at 20%?
Adding VAT: net × 1.2 (or net + 20%). Removing VAT: gross ÷ 1.2 for the net price, and gross ÷ 6 for the VAT.
For example £600.00 including VAT is £500.00 + £100.00 VAT.
Why divide by 6 to find the VAT?
Because VAT is 20% of the price before VAT, so a VAT-inclusive price is 120% of the net price and the VAT is 20/120 — one-sixth — of it. At the 5% rate the fraction is 5/105, one twenty-first.
What are the UK VAT rates?
Standard 20% on most goods and services; reduced 5% on some, such as children's car seats and home energy; zero 0% on zero-rated goods such as most food and children's clothes. Some things are exempt from VAT altogether, such as postage stamps and financial and property transactions.
Domestic electricity moves to 0% from 1 October 2026.
When do I have to register for VAT?
When your taxable turnover for the last 12 months goes over £90,000, or you expect it to in the next 30 days. You must register within 30 days of the end of the month you went over.
Taxable turnover includes zero-rated and reduced-rated sales, but not exempt or out-of-scope ones. You can register voluntarily below the threshold.
What is the difference between zero-rated and exempt?
Both charge the customer no VAT, but zero-rated sales count towards your taxable turnover and let you reclaim VAT on related costs; exempt sales don't count towards the threshold and don't let you reclaim VAT on the costs of making them.
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Further Reading
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