VAT Calculator
Add VAT to a net price to get the gross amount, or remove VAT from a gross (VAT-inclusive) price to find the net. All UK VAT rates supported.
How VAT Calculator works
How to add VAT
To add VAT to a net price, multiply the net amount by the VAT rate and add it to the net. For the standard 20% rate: gross = net × 1.20. For the reduced 5% rate: gross = net × 1.05.
How to remove VAT (reverse VAT)
To find the net price from a VAT-inclusive gross price, divide by (1 + rate). For 20% VAT: net = gross ÷ 1.20. Do not simply deduct 20% from the gross — this gives the wrong answer.
UK VAT rates
The standard rate is 20% and applies to most goods and services. The reduced rate is 5% and applies to items such as domestic fuel and power, children's car seats, and some renovation work. The zero rate (0%) applies to most food, books, children's clothing, and new homes, among others.
VAT registration threshold
Businesses must register for VAT when their taxable turnover exceeds £90,000 in any rolling 12-month period (2024–25 threshold). Once registered, businesses charge VAT on their sales and can reclaim VAT on purchases.
Frequently asked questions
How do I calculate 20% VAT?
Multiply the net amount by 1.20. Example: a net price of £100 becomes £120 including 20% VAT. The VAT element is £20.
How do I remove VAT from a price?
Divide the gross (VAT-inclusive) price by 1.20 for standard rate. Example: £120 ÷ 1.20 = £100 net. Do not subtract 20% from £120, as that gives £96, not £100.
What is the VAT rate on energy bills?
Domestic energy (gas and electricity) is charged at the reduced rate of 5% VAT.
Do I need to charge VAT if I'm not VAT-registered?
No. Only VAT-registered businesses can charge VAT. If your turnover is below the £90,000 threshold and you haven't voluntarily registered, you must not add VAT to invoices.
Can I reclaim VAT on business purchases?
Yes, if you are VAT-registered. You reclaim input VAT on business expenses through your VAT return and pay HMRC the difference between output VAT (charged to customers) and input VAT.