UK VAT Calculator
Enter an amount, choose the rate, and see the net price, VAT and gross price instantly — whether you are adding VAT to a net figure or extracting it from a VAT-inclusive price.
How it works
To add VAT: multiply the net amount by 1.20 (standard rate). £100 net becomes £120 gross. To remove VAT from a gross figure: divide by 1.20 — £120 gross contains £20 VAT and £100 net. A common mistake is taking 20% of the gross figure (£120 × 20% = £24 — wrong).
The standard rate is 20% (most goods and services), the reduced rate 5% (home energy, children's car seats, some renovations), and the zero rate 0% (most food, books, children's clothes). Some items are exempt entirely (insurance, education), which is different from zero-rated for reclaim purposes.
Businesses must register for VAT once taxable turnover passes the registration threshold, and can then reclaim VAT on purchases. Rates have been unchanged since January 2011.
FAQ
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.20 for standard-rated items. For example £240 ÷ 1.20 = £200 net, so the VAT element is £40. Never multiply the gross figure by 20% — that overstates the VAT because the tax was charged on the net amount, not the gross.
What are the current UK VAT rates?
Standard rate 20%, reduced rate 5%, and zero rate 0%. These have been unchanged since January 2011. Zero-rated items (most food, books, children's clothing) are still technically VATable — which lets businesses reclaim input VAT — while exempt items (insurance, postage, education) sit outside the system.
Is VAT charged on everything?
No. Most groceries, books and newspapers, children's clothes and public transport are zero-rated; domestic energy is 5%; and some services like insurance and education are exempt. Restaurant food, alcohol, electronics and most services carry the full 20%.