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VAT Calculator
Add or remove VAT at standard, reduced, or custom rates.
Add or Remove VAT
Both directions with formula breakdown
Multiple VAT Rates
Standard (20%), reduced (5%), and zero-rated
Quick Reference Table
Common amounts at your selected rate
VAT Calculator
Add VAT to a net amount or remove VAT from a gross amount.
How to Calculate VAT
Adding VAT
Gross = Net x (1 + VAT rate)
Example: £100 x 1.20 = £120
Multiply the net amount by 1 plus the VAT rate as a decimal. For 20% VAT, multiply by 1.20. The VAT portion is the net amount multiplied by the rate alone (£100 x 0.20 = £20).
Removing VAT (Reverse)
Net = Gross / (1 + VAT rate)
Example: £120 / 1.20 = £100
Divide the gross (VAT-inclusive) price by 1 plus the rate. A common mistake is subtracting 20% from the gross — this gives the wrong answer because 20% of £120 is £24, not £20.
UK VAT Rates Explained
Standard Rate (20%)
Applies to most goods and services in the UK. This includes electronics, clothing (adult), furniture, professional services, restaurant meals, and most retail products.
Reduced & Zero Rates
5% reduced rate applies to home energy, child car seats, and some building work. 0% zero-rated applies to most food, children's clothing, books, and public transport. Exempt items (insurance, education) have no VAT at all.
How to Use This VAT Calculator
Enter Amount
The net or gross price you want to calculate.
Choose Rate & Direction
Select the VAT rate and whether to add or remove.
See Full Breakdown
Net, VAT, and gross with formula and reference table.
Common VAT Questions for Businesses
- VAT registration threshold. You must register when taxable turnover exceeds £90,000 in 12 months. Voluntary registration below this lets you reclaim input VAT.
- Flat rate scheme. Small businesses can pay a fixed percentage of gross turnover instead of tracking input/output VAT. Rates vary by industry (e.g., 14.5% for computer services).
- Input vs output VAT. Output VAT is what you charge customers. Input VAT is what you pay on purchases. You pay HMRC the difference. If input exceeds output, you get a refund.
- VAT returns. Most businesses submit quarterly returns and payments to HMRC via Making Tax Digital (MTD) compatible software.
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