Free tool
VAT calculator (UK)
Add or remove VAT at 20%, 5% or any custom rate. Type an amount and you get the net price, the VAT and the gross price instantly, with the working shown. No sign up needed for the calculator.
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Quick answer
To add 20% VAT, multiply the net price by 1.2. To remove 20% VAT, divide the gross price by 1.2. The UK standard VAT rate is 20%, the reduced rate is 5% and the zero rate is 0%. The VAT registration threshold is £90,000 of taxable turnover in any rolling 12 months.
Get the VAT pricing spreadsheet
Reprice a whole product or service list in one go. The workbook adds or removes VAT across up to 200 lines with the rate picked per item, plus totals. Enter your details and the Excel file downloads immediately.
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How the VAT maths works
- Adding VAT: net price × 1.2 at the 20% standard rate (× 1.05 at 5%). A £100 net invoice becomes £120.
- Removing VAT: gross price ÷ 1.2 at the 20% rate (÷ 1.05 at 5%). A £120 till receipt is £100 net plus £20 VAT.
- The common mistake: taking 20% off the gross does not remove VAT. 20% of £120 is £24, but the VAT in £120 is £20. Always divide, never subtract a percentage.
How do I remove VAT from a price?
Divide the gross price by 1.2 for 20% VAT (or by 1.05 for 5% VAT). The result is the net price, and the difference is the VAT. For example £120 divided by 1.2 is £100 net, so the VAT is £20.
How do I add VAT to a price?
Multiply the net price by 1.2 for 20% VAT (or by 1.05 for 5% VAT). For example £100 multiplied by 1.2 is £120 including VAT.
What are the current UK VAT rates?
The standard rate is 20%, the reduced rate is 5% (home energy, some renovations), and the zero rate is 0% (most food, books, children's clothes). Some items are exempt, which is not the same as zero rated.
What is the VAT registration threshold?
You must register for VAT when your taxable turnover passes £90,000 in any rolling 12 month period, not the tax year. You can also register voluntarily below that.
Should I charge VAT if I am not VAT registered?
No. If you are not VAT registered you must not charge VAT or show VAT on invoices. You also cannot reclaim VAT on purchases.
Related tools
Digital Adaption helps UK businesses fix the data behind the numbers: bookkeeping workflows, reporting you can trust and systems that talk to each other. Get in touch. Need a version of this tool built for your own company, with your rates, categories and workflows baked in? We build custom calculators, workbooks and internal tools. Contact us for a tailored quote.