UK VAT Calculator
Choose whether you want to add VAT to a net price or remove VAT from a gross price, enter your amount, and pick the rate. You get the VAT amount and the other price instantly.
Standard VAT in the UK is 20%. Reduced (5%) applies to some goods like energy and sanitary products; some goods are zero-rated (0%).
How the calculation works
We believe numbers should be transparent. Here is the formula behind this calculator.
Worked example
Worked example: adding 20% VAT
Important assumptions
- Uses the standard, reduced and zero rates. The reduced rate is not a blanket discount — it only applies to specific goods and services.
- Some supplies are exempt from VAT (e.g. most financial services and insurance) rather than zero-rated.
- Businesses can normally reclaim VAT on business purchases if they are VAT registered.
Frequently asked questions
How do I remove VAT from a price?
To take 20% VAT out of a gross price, divide the price by 1.2. For example, £120 including VAT ÷ 1.2 = £100 net, with £20 VAT.
Do I need to charge VAT?
You must register for VAT once your taxable turnover exceeds the registration threshold (usually around £90,000 in 2026/27). Some businesses register voluntarily so they can reclaim VAT on their own costs.
Is VAT the same as sales tax?
VAT is a value-added tax charged at each stage of a supply chain, whereas US-style sales tax is charged only at the final point of sale. In practice, end consumers see a similar effect.
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Related guides
New to the topic? Browse the guides section for plain-English explainers on vat, including worked examples and tips.
Browse financial guidesThese calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.