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UK VAT Calculator

Quickly add or remove VAT from any amount using current UK rates.

£

Calculation Result

Net Amount (Exc. VAT)

£100.00

VAT (20%)

£20.00

Gross Amount (Inc. VAT)

£120.00

What is VAT?

Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. In the United Kingdom, businesses with a turnover exceeding the VAT threshold must register for VAT and collect it on behalf of HM Revenue and Customs (HMRC).

Current UK VAT Rates

Standard Rate (20%)

Applies to most goods and services in the UK.

Reduced Rate (5%)

Applies to things like home energy, car seats, and some health products.

Zero Rate (0%)

Applies to most food, books, children's clothes, and public transport.

How to Calculate VAT

Adding VAT (Net to Gross)

Formula: Net Price × (1 + VAT Rate)

Example: If you have a net price of £100 and want to add 20% VAT, you calculate 100 × 1.20 = £120 total.

Removing VAT (Gross to Net)

Formula: Gross Price ÷ (1 + VAT Rate)

Example: If a product costs £120 including 20% VAT, you calculate 120 ÷ 1.20 = £100 net.

How this calculator works

You can use this VAT calculator to add VAT to a net amount or remove VAT from a gross amount. The tool applies the selected VAT rate to produce the VAT portion and the final inclusive or exclusive total.

Assumptions used

  • The tool assumes the selected amount is fully subject to the chosen VAT rate.
  • It does not determine whether a supply is standard-rated, reduced-rated, zero-rated, exempt or outside the scope of VAT.
  • Invoice rounding, mixed-rate transactions and partial exemption rules are outside the scope of this simple calculator.
  • Always confirm the correct treatment with HMRC guidance or an accountant if the tax treatment matters commercially.

Frequently asked questions

When should I add VAT?

Add VAT when you start with a net amount and want to know the gross total charged to the customer at the applicable VAT rate.

When should I remove VAT?

Remove VAT when you already have a VAT-inclusive amount and need to identify the net value and the VAT portion separately.

Is 20% always correct?

No. Many UK transactions use the standard rate, but some goods and services qualify for 5%, 0%, exemption or other specific treatment.

Can this replace accounting advice?

No. It is a quick calculation tool only. For registration, invoice compliance or transaction classification, use HMRC guidance or professional advice.