VAT Calculator
Add VAT to a net price or work backwards from a gross price to find the VAT element, at the standard 20% rate, the reduced 5% rate or any custom rate.
Net (excl. VAT)-
VAT-
Gross (incl. VAT)-
Illustrative only. Whether a sale is standard-rated, reduced-rated, zero-rated or exempt depends on the goods or services — check the HMRC VAT rate guidance or ask your accountant before invoicing.
How UK VAT works
VAT (Value Added Tax) is charged on most goods and services sold by VAT-registered businesses in the UK. The standard rate is 20%; a reduced 5% rate applies to things like home energy and children's car seats, and some items — most food, books, children's clothes — are zero-rated.
To add VAT, multiply the net price by 1 plus the rate: £100 at 20% becomes £120. To remove VAT from a gross price, divide by the same factor: £120 ÷ 1.2 = £100 net, so the VAT element is £20 — not £24, which is the most common VAT mistake.