VAT Calculator
UK VAT Calculator
Use this free UK VAT calculator to add VAT to a net price or remove VAT from a VAT-inclusive price. See the net, VAT and gross totals instantly.
- ✓ Add or remove VAT
- ✓ 20%, 5%, 0% or custom rates
- ✓ Net, VAT and gross totals
- ✓ Free, no sign-up
What does this VAT calculator do?
Use PoundKit's UK VAT Calculator to add VAT to a net price or remove VAT from a VAT-inclusive price. It supports 20%, 5%, 0% and custom VAT rates.
Quick examples
- £100 + 20% VAT = £120 gross
- £120 including 20% VAT = £100 net + £20 VAT
- £200 + 5% VAT = £210 gross
The standard UK VAT rate is 20%. Reduced and zero rates only apply to certain goods and services.
£100.00
£20.00
£120.00
Mode: Add VAT · Rate: 20%
How it works
Add VAT
net = amount
vat = net × rate ÷ 100
gross = net + vat
Remove VAT
gross = amount
net = gross ÷ (1 + rate ÷ 100)
vat = gross − net
UK VAT rates explained
- Standard rate · 20%Most goods and services
- Reduced rate · 5%Home energy, children's car seats and similar
- Zero rate · 0%Most food, books, children's clothes
Some goods and services are exempt or outside the scope of VAT — which is different from being zero-rated. Always check the current rules on GOV.UK.
VAT-inclusive vs VAT-exclusive prices
A VAT-exclusive price (also called net) doesn't include VAT — you add VAT on top to get the total. A VAT-inclusive price (also called gross) already includes the VAT charge. B2B prices are often quoted excluding VAT; consumer prices in the UK must usually be quoted inclusive of VAT.
Examples
Add 20% to £100
Remove 20% from £120
Add 5% to £200
Add 0% to £100
Net vs gross — quick reference table
| Net (ex-VAT) | Rate | VAT amount | Gross (inc-VAT) | Typical use |
|---|---|---|---|---|
| £50.00 | 20% | £10.00 | £60.00 | Most goods & services |
| £100.00 | 20% | £20.00 | £120.00 | Standard rate |
| £250.00 | 20% | £50.00 | £300.00 | Freelance day rate |
| £500.00 | 20% | £100.00 | £600.00 | B2B invoice line |
| £200.00 | 5% | £10.00 | £210.00 | Home energy |
| £100.00 | 0% | £0.00 | £100.00 | Most food, books, kids' clothes |
Reverse the calculation to remove VAT from a gross price — see the step-by-step guide, net vs gross explainer, or small-business VAT examples.
UK VAT in one paragraph
UK VAT is a consumption tax charged on most goods and services. If your taxable turnover exceeds the current registration threshold you must register with HMRC, charge VAT on qualifying sales (output VAT), and can reclaim VAT on business purchases (input VAT). The standard rate is 20%; a reduced 5% and zero 0% rate apply to specific categories. Consumer prices in the UK must generally be shown inclusive of VAT; B2B prices are usually quoted ex-VAT. Once you know the rate, use this calculator to work out the net, VAT and gross figures — then drop the numbers straight into your VAT invoice.
Common mistakes
- Dividing a gross price by 1.2 to "remove" the rate and then forgetting to subtract from gross to find the VAT itself.
- Multiplying gross by 20% to find the VAT included — that overstates the VAT. Always divide by 1.20 first.
- Quoting VAT-exclusive prices to consumers. UK consumer prices must usually include VAT.
Official references
Questions
How do I add 20% VAT to a price?
Multiply the net amount by 1.20. For example, £100 net × 1.20 = £120 gross. The VAT portion is £20.How do I remove VAT from a VAT-inclusive price?
Divide the gross amount by 1.20 to get the net, then subtract to find the VAT. For example, £120 ÷ 1.20 = £100 net, so VAT is £20.How much is VAT in the UK?
The standard UK VAT rate is 20%. Some goods and services use reduced (5%) or zero (0%) rates. This calculator helps you add or remove VAT once you know the rate to use — it does not decide which rate applies to your product.What is the current UK standard VAT rate?
The standard UK VAT rate is 20%. A reduced 5% rate applies to a limited set of goods such as home energy, and some items are zero-rated.What is the difference between zero-rated and exempt?
Zero-rated supplies are taxable at 0% — they count towards your VAT turnover and you can reclaim related input VAT. Exempt supplies are outside the VAT system, so you generally can't reclaim related input VAT.Can this calculator tell me which VAT rate applies to my product?
No. VAT classification depends on the specific good or service. Always check GOV.UK or speak to your accountant.Is this tax advice?
No. This calculator is a planning tool only and does not constitute tax or accounting advice.