VAT calculator
VAT is charged at 20% on most goods and services, a reduced 5% rate on items such as domestic energy, and 0% on zero-rated goods such as most food, under gov.uk's VAT rates guidance. This calculator adds VAT to a net figure or extracts it from a gross figure at any of these rates.
The standard UK VAT rate is 20%, charged on most goods and services. To add VAT, multiply the net price by 1.20. To remove VAT from a gross price, divide by 1.20, not subtract 20%. A reduced rate of 5% applies to domestic energy and some building work, and a zero rate of 0% covers most food, books and children's clothing. Enter a price below to add or remove VAT at any rate.
How is VAT added to or removed from a price?
VAT is a percentage added to the value of a sale. Adding it and removing it are not the same sum. To add VAT you multiply the net figure by the rate and add it on. To remove VAT you divide the gross figure by one plus the rate, because the gross already contains the VAT.
The common mistake is removing VAT by taking 20% off the gross price. That undershoots, because the 20% was charged on the smaller net figure, not on the gross. Dividing by 1.20 gives the right net.
What does VAT look like on an example price?
A net price of £100 at the standard 20% rate carries £20 of VAT, so the gross price is £120. Going the other way, a £120 gross price divided by 1.20 gives £100 net, confirming the £20 of VAT sits inside it. At the reduced 5% rate the same £100 net would carry only £5 of VAT.
What are the UK VAT rates?
Most sales use the standard 20% rate. A reduced 5% rate covers a short list including domestic fuel and power and some energy-saving materials. A zero rate of 0% applies to most food, books and children's clothes: still technically taxable, but at 0%. Exempt supplies, such as insurance and some financial services, sit outside VAT entirely and are not the same as zero-rated.
Common questions
How do I add VAT to a price?
Multiply the net figure by the VAT rate and add it on. At the standard 20% rate a £100 net price becomes £120: £100 plus £20 of VAT.
How do I remove VAT from a gross price?
Divide the gross figure by 1.20. A £120 gross price divided by 1.20 gives £100 net, so the VAT inside it is £20. Taking 20% off £120 would be wrong: that gives £96.
What are the UK VAT rates?
The standard rate is 20% and covers most goods and services. A reduced 5% rate applies to items such as domestic energy and child car seats. A zero rate of 0% covers most food, children's clothing and books. Some supplies are exempt, which is different from zero-rated.
Do I have to charge VAT?
Only if you are VAT registered. Registration is compulsory once taxable turnover passes the £90,000 threshold, and optional below it. If you are not registered you neither charge VAT nor reclaim it.
How is VAT added to or removed from a price?
Adding VAT means multiplying the net figure by the rate and adding the result on top. Removing VAT means dividing the gross figure by one plus the rate, since the gross already includes the VAT. Taking a flat percentage off the gross figure gives the wrong answer because the rate was applied to the smaller net figure.
What does VAT look like on an example price?
A £100 net price at the standard 20% rate carries an estimated £20 of VAT, giving a gross price of £120. Dividing that £120 gross figure by 1.20 confirms a net of £100 and VAT of £20. At the reduced 5% rate the same £100 net would carry an estimated £5 of VAT instead.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.