VAT calculator
United Kingdom · 2026/27 tax year
Also for Canada
Also for United StatesAdd VAT to a price, or take it off a price that already includes VAT. Works with the UK standard rate of 20%, the reduced rate of 5%, or any rate you choose.
How to calculate VAT
To add VAT at 20%, multiply the price without VAT (the net price) by 1.2. For example, £100 + VAT is £100 × 1.2 = £120, so the VAT is £20.
To remove VAT at 20% from a price that already includes it (the gross price), divide by 1.2. For example, £120 ÷ 1.2 = £100, so the VAT included was £20.
A common mistake is to take 20% off the gross price. £120 minus 20% is £96, which is wrong. VAT is 20% of the net price, so it makes up one sixth (16.67%) of a VAT-inclusive price.
UK VAT rates
| Rate | % | Applies to (examples) |
|---|---|---|
| Standard rate | 20% | Most goods and services |
| Reduced rate | 5% | Home energy, children's car seats, some energy-saving installations |
| Zero rate | 0% | Most food, books and newspapers, children's clothes |
The rate depends on what is being sold. HMRC publishes the full list in VAT rates on different goods and services.
Frequently asked questions
How do I work out 20% VAT?
Multiply the price without VAT by 0.2 to get the VAT amount, or by 1.2 to get the total including VAT.
How do I remove VAT from a total?
Divide the VAT-inclusive total by 1.2 for 20% VAT, or by 1.05 for 5% VAT. The difference between the two figures is the VAT.
When does a business have to register for VAT?
A UK business must register for VAT when its VAT-taxable turnover goes over £90,000 in a rolling 12-month period, or is expected to in the next 30 days.
Last checked and updated: October 2026