About the UK VAT Calculator
Value Added Tax (VAT) is charged on most goods and services sold by VAT-registered businesses in the UK. The standard rate has been 20% since 4 January 2011, with a reduced rate of 5% and a zero rate for certain items. This calculator works in both directions: add VAT to a price before tax (useful when writing an invoice or quote) or take VAT out of a price that already includes it (useful for receipts, expenses and bookkeeping). Results show the net price, the VAT and the gross total, rounded to the penny.
How to use the UK VAT Calculator
- Choose "Add VAT" if your price excludes VAT, or "Remove VAT" if it already includes VAT.
- Enter the amount in pounds.
- Pick the rate: standard 20%, reduced 5%, zero 0%, or enter a custom rate (for example to check a foreign VAT rate).
- Read the net price, VAT amount and gross total in the results table.
The formula behind it
How to calculate VAT: multiply by 1.2 or divide by 1.2
To add 20% VAT to a price, multiply it by 1.2. To find the price before VAT from a total that includes it, divide by 1.2. For example, £1,500 plus VAT is £1,500 × 1.2 = £1,800, and the VAT is £300.
| Amount | VAT at 20% | Amount plus VAT (× 1.2) | If the amount includes VAT: net (÷ 1.2) |
|---|---|---|---|
| £100 | £20.00 | £120.00 | £83.33 |
| £250 | £50.00 | £300.00 | £208.33 |
| £500 | £100.00 | £600.00 | £416.67 |
| £1,000 | £200.00 | £1,200.00 | £833.33 |
| £1,500 | £300.00 | £1,800.00 | £1,250.00 |
| £1,800 | £360.00 | £2,160.00 | £1,500.00 |
| £2,000 | £400.00 | £2,400.00 | £1,666.67 |
| £5,000 | £1,000.00 | £6,000.00 | £4,166.67 |
Why you can’t just subtract 20% to remove VAT
A common mistake is to take 20% off a VAT-inclusive price. That gives the wrong answer, because the VAT was 20% of the smaller, pre-VAT price, not of the total. For a £120 bill, 20% of £120 is £24 — but the VAT is actually £20, because £100 + 20% = £120. The correct way is to divide by 1.2, or, equivalently, take one-sixth of the total to find the VAT.
For the 5% reduced rate, divide the gross price by 1.05; the VAT is one twenty-first (1/21) of the total.
UK VAT rates at a glance
HMRC applies three main rates. Some common examples:
- Standard rate 20%: most goods and services, including adult clothing, electronics, restaurant meals and most professional services.
- Reduced rate 5%: for example domestic fuel and power, and children’s car seats.
- Zero rate 0%: for example most food bought in shops, children’s clothes, and books and newspapers.
- Exempt (no VAT, not the same as zero-rated): for example most insurance, financial services, and health services from registered professionals.
2026 update: domestic electricity zero-rated for six months
From 1 October 2026 to 31 March 2027, qualifying domestic electricity supplied in Great Britain (England, Scotland and Wales) is zero-rated instead of being charged at the 5% reduced rate. Other fuels such as gas are not affected, and electricity in Northern Ireland stays at 5%. Use the 0% option to check an electricity bill for this period.
Do I need to register for VAT?
You must register with HMRC if your VAT-taxable turnover goes over £90,000 in any rolling 12-month period, or if you expect it to exceed £90,000 within the next 30 days alone. Below that threshold, registration is voluntary. Once registered, you charge VAT on your sales and can usually reclaim the VAT you pay on business purchases.
Examples
Adding VAT to an invoice
A £450 job plus 20% VAT: £450 × 1.2 = £540, of which £90 is VAT.
Removing VAT from a receipt
A £59.99 receipt at 20%: £59.99 ÷ 1.2 = £49.99 net, and £10.00 VAT.
Reduced rate
A £210 energy bill at 5%: £210 ÷ 1.05 = £200 net, and £10 VAT.
Quick check
The VAT in any price that includes 20% VAT is that price ÷ 6. For £72, the VAT is £12.
Frequently asked questions
How do I calculate VAT at 20%?
Multiply the net price by 0.2 to find the VAT, or by 1.2 to find the total including VAT. For £250, the VAT is £50 and the total is £300.
How much is VAT in the UK?
The standard rate is 20%. A reduced rate of 5% applies to some items such as domestic fuel, and many essentials such as most food and children’s clothes are zero-rated.
What is £1,500 plus VAT?
£1,500 × 1.2 = £1,800, of which £300 is VAT at the 20% standard rate.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.2 for the standard rate (or by 1.05 for the reduced rate). The difference between the two figures is the VAT.
What is the difference between zero-rated and exempt?
Zero-rated items are taxable at 0%, so a business selling them can still reclaim VAT on its costs. Exempt items are outside the VAT system, so VAT on related costs generally cannot be reclaimed.
Does this calculator work for other countries?
Yes. Choose "Custom rate" and enter the local VAT rate, for example 19% for Germany or 23% for Ireland. Always check the current rate with that country’s tax authority.
How is VAT rounded?
This calculator rounds to the nearest penny. HMRC rules allow businesses to round VAT on invoices to the nearest penny, or down, in most cases; check HMRC guidance for your specific scheme.
Sources
About the author: Ahmed Bilal
Ahmed Bilal is the founder of VolexTool and builds and maintains every calculator on the site. Tax rates and thresholds are taken directly from official sources such as GOV.UK, HMRC, the Canada Revenue Agency and the Australian Taxation Office, the formula is shown on every page, and each update must pass more than 600 automated checks before it goes live. Ahmed is not a tax adviser: for decisions about your own situation, speak to a qualified accountant or financial adviser.