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VAT Calculator (UK)

Add VAT to a net price or remove VAT from a gross total at the 20% standard, 5% reduced or 0% zero rate. Free, no sign-up, runs entirely in your browser.

£120.00
Net amount£100.00
VAT @ 20%£20.00

Figures rounded to 2 decimals (pence). Verify the correct VAT rate for your goods or services against current HMRC guidance.

How to add or remove VAT

To add VAT to a net price, multiply by (1 + rate/100): a £100 invoice at the 20% standard rate becomes £120 gross, with £20 of VAT. To remove VAT from a price that already includes it, divide by the same factor instead of multiplying: £120 ÷ 1.2 = £100 net. Dividing by 1.05 removes the 5% reduced rate, and a zero-rated item simply has no VAT to remove.

A common mistake is subtracting 20% of the gross figure, which understates the net amount. VAT is calculated on the net price, so the VAT portion of a 20% gross total is one-sixth, not one-fifth.

UK VAT rates

RateCommonly applies to
20% (standard)Most goods and services
5% (reduced)Domestic fuel and power, children's car seats, some energy-saving home improvements
0% (zero-rated)Most food and drink, children's clothes and footwear, books, newspapers and magazines
ExemptInsurance, postage stamps, certain education and financial services (no VAT charged, and exempt sales do not count towards the registration threshold)

You must register for VAT once your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period (threshold effective since 1 April 2024), or if you expect to exceed it in the next 30 days alone. Zero-rated sales count towards the threshold; exempt sales do not.

Frequently asked questions

What is the current VAT rate in the UK?

The standard VAT rate is 20% and applies to most goods and services. A reduced rate of 5% applies to a small set of items such as domestic fuel and power and children's car seats, and a zero rate (0%) applies to most food, children's clothing, books and newspapers. Some supplies, such as insurance and certain education, are exempt rather than zero-rated.

How do I remove VAT from a gross amount?

Divide the VAT-inclusive amount by 1.2 for the 20% rate (by 1.05 for the 5% rate). For example, £120 inclusive of 20% VAT: 120 ÷ 1.2 = £100 net, so the VAT component is £20. This is also called a reverse VAT calculation.

When do I need to register for VAT?

You must register with HMRC if your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect it to exceed £90,000 in the next 30 days alone. The £90,000 threshold has applied since 1 April 2024. Below the threshold, registration is voluntary.

What do the 5% reduced rate and 0% zero rate apply to?

The 5% reduced rate covers items such as domestic fuel and power and children's car seats. The 0% zero rate covers most food and drink, children's clothes and footwear, books, newspapers and magazines. Zero-rated sales still count towards the £90,000 registration threshold; exempt sales (such as insurance) do not.

Is this VAT calculator free?

Yes. It is completely free, requires no sign-up, and all calculations run locally in your browser. No data is uploaded anywhere.

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