How to calculate VAT

VAT (Value Added Tax) is a tax added to most goods and services in the UK. The standard rate is 20%. To add VAT, multiply the net price by 1.20. To remove VAT from a gross price, divide by 1.20. To find just the VAT inside a 20% gross price, divide it by 6.

UK VAT rates

Standard rate: 20% (most goods and services)
Reduced rate: 5% (home energy, children's car seats, and some others)
Zero rate: 0% (most food, children's clothes, books)

Adding VAT

Multiply the net amount by 1.20 for the 20% rate.

Net price: £100
VAT at 20%: £20
Gross price: £120

Removing VAT

Divide the gross price by 1.20 to get the net amount, or by 6 to get the VAT on its own.

Gross price: £120
Net price: £120 ÷ 1.20 = £100
VAT portion: £120 ÷ 6 = £20

How to use the VAT calculator

Enter the amount.
Choose Add VAT or Remove VAT.
Set the rate (20% by default, or type a custom rate).
Read the net, VAT, and gross figures.

Frequently asked questions

How do I work out VAT backwards from a total?

Divide the gross total by 1.20 to find the net amount, or by 6 to find the VAT itself, at the 20% rate.

What is the VAT rate in the UK?

The standard rate is 20%. A reduced 5% rate and a 0% rate apply to specific goods and services.

Do I have to register for VAT?

You must register once your VAT-taxable turnover passes £90,000 in any rolling 12-month period. You can register voluntarily below that threshold.

For a full walkthrough with more examples, read How to Calculate VAT: a complete guide. For other money tools, try the Mortgage Calculator, Stamp Duty Calculator, or browse all financial tools.

VAT Calculator