UK VAT Calculator: add or remove VAT
This UK VAT calculator adds VAT to a net price or takes it out of a VAT-inclusive price. Enter an amount, pick 20% standard, 5% reduced or 0% zero rate, and you get net, VAT and gross at once, plus the working.
Example: Amount 100 £ · The amount is …: net (add VAT) · VAT rate: 20% standard rate → Result: £100.00 + £20.00 VAT (20%) = £120.00. Source: GOV.UK – VAT rates: standard 20%, reduced 5%, zero 0% (retrieved 30 Sep 2026). Updated: .
How it is calculated
How to add VAT
Multiply the net price by 1.2 for the 20% standard rate, or by 1.05 for the 5% reduced rate. The VAT itself is net × 0.2 (or × 0.05).
- £250 net + 20% VAT = £250 × 1.2 = £300 (VAT £50)
- £80 net + 5% VAT = £80 × 1.05 = £84 (VAT £4)
How to remove VAT (reverse VAT)
The common mistake is to take 20% off the gross price. That is wrong, because the 20% was added to the net price, not to the gross. Instead, divide the gross price by 1.2 – or use HMRC's VAT fraction: rate ÷ (100 + rate). For 20% that is 20/120 = 1/6, for 5% it is 5/105 = 1/21.
- £300 incl. VAT: VAT = £300 × 1/6 = £50, net = £250
- £84 incl. 5% VAT: VAT = £84 × 1/21 = £4, net = £80
Taking 20% off £300 would give £240 – £10 too little.
UK VAT rates in 2026
| Rate | % | Examples (GOV.UK) |
|---|---|---|
| Standard | 20% | most goods and services |
| Reduced | 5% | children's car seats, home energy |
| Zero | 0% | most food, children's clothes |
The standard rate has been 20% since 4 January 2011. Some supplies are exempt (for example postage stamps and many financial and property transactions): they carry no VAT at all and, unlike zero-rated supplies, do not count towards taxable turnover.
Working from the VAT amount
If you only know the VAT on an invoice, choose "the VAT amount": net = VAT ÷ rate. £35 VAT at 20% means a net price of £175 and a gross price of £210.
Rounding and limits
Amounts are rounded to the nearest penny, and the VAT is worked out first when you remove VAT, so net + VAT always adds up to the gross price. On an invoice with many lines, rounding per line or on the total can differ by a penny or two. The calculator does not decide which rate applies to a product – check HMRC's guidance for that. For German VAT use the German VAT calculator, for France and Spain the France & Spain VAT calculator; prices with a margin are easier with the selling price calculator.
Frequently asked questions
How do I calculate VAT backwards?
Divide the VAT-inclusive price by 1.2 to get the net price, or multiply it by the VAT fraction 1/6 to get the VAT. £120 incl. VAT = £100 net + £20 VAT.
Is UK VAT still 20% in 2026?
Yes. The standard rate is 20%, the reduced rate 5% and the zero rate 0% (GOV.UK, VAT rates). The standard rate has applied since 4 January 2011.
Why can't I just take 20% off the gross price?
Because VAT is 20% of the net price, not of the gross price. Of a VAT-inclusive price, the VAT share is 20/120 = one sixth, i.e. about 16.67%.
What is the VAT fraction?
HMRC's shortcut for taking VAT out of a gross price: rate ÷ (100 + rate). It is 1/6 at 20% and 1/21 at 5%.
What is the difference between zero-rated and exempt?
Both carry no VAT. Zero-rated supplies are still taxable supplies (they count towards the VAT threshold and allow input VAT to be reclaimed); exempt supplies are outside that system.
Sources and legal basis
- GOV.UK – VAT rates: standard 20%, reduced 5%, zero 0% (retrieved 30 Sep 2026)
- VAT Notice 700, 7.3.1: HMRC – VAT guide (VAT Notice 700), 7.3.1: VAT fraction = rate ÷ (100 + rate), 1/6 at 20%, 1/21 at 5% (retrieved 30 Sep 2026)
As of: · Editorial policy
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