VAT Calculator

Add VAT to a price or take it off, at the UK standard rate of 20%, the reduced rate of 5%, or any rate you choose.

Updated for the 2026/27 tax yearLast reviewed 7 November 2026

Your price

The net amount
£
VAT breakdown20% VAT
Price including VAT
£120.00
Net (excluding VAT)£100.00
VAT at 20%£20.00
Gross (including VAT)£120.00

VAT formulas

You want to…Formula (20%)Example
Add VATNet × 1.2£50 → £60
Find the VAT in a net priceNet × 0.2£50 → £10
Remove VATGross ÷ 1.2£60 → £50
Find the VAT in a gross priceGross ÷ 6£60 → £10

For 5% VAT use 1.05 instead of 1.2, and divide a gross price by 21 to find the VAT in it.

UK VAT rates

  • Standard rate – 20%: most goods and services.
  • Reduced rate – 5%: domestic gas and electricity, children’s car seats, some energy-saving work.
  • Zero rate – 0%: most food, books and newspapers, children’s clothes and shoes.

The most common VAT mistake

People often remove VAT by knocking 20% off the gross price. That is wrong, because the 20% was added to the smaller net figure. On a £120 invoice, 20% off gives £96, but the real net price is £100. This calculator always uses the correct method.

For guidance only. Check HMRC’s VAT guidance for the correct rate on specific goods and services.

Sources

Figures are checked against these official sources. Last reviewed 7 November 2026.

Common questions

How do I remove 20% VAT from a price?

Divide the price by 1.2. For example £120 ÷ 1.2 = £100, so the VAT is £20. Do not just take 20% off the gross price – that gives the wrong answer (£96).

How do I add 20% VAT?

Multiply the net price by 1.2. For example £250 × 1.2 = £300, of which £50 is VAT.

What is the current VAT rate in the UK?

The standard rate is 20%. A reduced rate of 5% applies to things like home energy and children’s car seats, and some items such as most food and children’s clothes are zero-rated.

When does a business have to register for VAT?

You must register if your VAT-taxable turnover goes over £90,000 in any rolling 12-month period, or you expect it to in the next 30 days.

What is the difference between zero-rated and exempt?

Zero-rated goods are VATable at 0%, so the business can still reclaim VAT on its costs. Exempt goods and services (such as most insurance and education) are outside VAT altogether.

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