Add or remove VAT at any rate.
Whether you are writing an invoice, checking a receipt or pricing a product, this VAT calculator adds VAT to a net price or removes it from a gross price. The UK standard rate of 20% and reduced rate of 5% are built in, along with the zero rate and common European rates such as Ireland’s 23% and Germany’s 19%. Every result shows the VAT amount and the working.
Quick answer: to add VAT, multiply the net price by 1 + the VAT rate: £100 + 20% VAT = 100 × 1.2 = £120. To remove VAT, divide the gross price by the same number: £120 ÷ 1.2 = £100, so the VAT was £20. Do not just take 20% off the total, because that gives £96.
How to Use the VAT Calculator
Add VAT
- Enter the price before VAT (the net price).
- Choose the VAT rate.
- Read the total including VAT and the VAT amount.
Remove VAT
- Enter the price including VAT (the gross price).
- Choose the VAT rate.
- Read the price before VAT and the VAT included.
VAT Formulas
- Add VAT: Gross = Net × (1 + rate)
- VAT amount: VAT = Net × rate
- Remove VAT: Net = Gross ÷ (1 + rate)
- VAT in a gross price: VAT = Gross − Net
Shortcut for 20% VAT: the VAT in a VAT-inclusive price is one sixth of the total. £120 ÷ 6 = £20.
VAT Examples
Adding 20% VAT to £100. 100 × 1.2 = £120, of which £20 is VAT.
Removing 20% VAT from £49.99. 49.99 ÷ 1.2 = £41.66 net, so the VAT is £8.33.
Adding 5% VAT to a £250 energy bill. 250 × 1.05 = £262.50.
Why not just take 20% off? 20% of £120 is £24, which gives £96. That is wrong because the VAT was 20% of £100, not of £120.
UK VAT Rates
| Rate | VAT | Applies to (examples) |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced | 5% | Domestic gas and electricity, children’s car seats |
| Zero | 0% | Most food, children’s clothes, books and newspapers |
Some items are exempt from VAT altogether, such as most insurance, education and health services. Exempt is not the same as zero-rated: a business selling only exempt items cannot reclaim the VAT it pays on its own costs. Rates and rules can change, so check GOV.UK for the current position on a specific product.
Other Countries
| Country | Standard rate |
|---|---|
| United Kingdom | 20% |
| Ireland | 23% |
| Germany | 19% |
The calculator also offers 21%, 15% and 10%, which cover the standard or reduced rates in many other countries. Check your country’s tax authority for the exact rate on what you are selling.
VAT for Small Businesses
- In the UK, a business must register for VAT once its taxable turnover passes the threshold set by HMRC. Check GOV.UK for the current figure.
- VAT-registered businesses charge VAT on sales (output VAT) and can usually reclaim the VAT on business purchases (input VAT). They pay HMRC the difference.
- Prices shown to consumers in the UK must normally include VAT. Prices for business customers are often shown without it.
When working out your margin, use prices before VAT. The profit margin calculator and markup calculator both work with net prices.
VAT Calculator FAQs
How do I calculate VAT at 20%?
Multiply the net price by 0.2 to get the VAT, or by 1.2 to get the total including VAT.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.2 for 20% VAT, or by 1.05 for 5%. The result is the price before VAT.
Is VAT the same as sales tax?
They are both taxes on sales, but they work differently. VAT is charged at each stage of the supply chain and is usually included in the shelf price. US sales tax is charged only on the final sale and added at the till. For US prices, use the sales tax calculator.
What about GST?
GST in Australia, New Zealand, Canada and India works much like VAT, but at different rates. The same add and remove formulas apply.
How we checked this page: every example was worked by hand and matches the calculator, including the removal of VAT from £49.99.
Tax rules change and depend on what you sell. This page is general information, not tax advice. Check GOV.UK or an accountant for your situation.