Calculate UK VAT at 20%, 5%, 0% or a custom rate. See the net price, VAT amount, gross price and exact workings instantly.
Calculate VAT
Enter the net price before VAT.
International & invoice options
UK is the primary mode. International rates are a secondary aid and eligibility varies by supply and jurisdiction.
Loads the national standard rate only, last verified 15 July 2026. Special, reduced and territorial rates are not classified here.
State and local sales taxes vary. Enter the exact combined rate from the relevant tax authority.
Treats the amount as a per-item price.
Compare methods to explain possible penny differences.
Results
Net£100.00
VAT£20.00
Gross£120.00
£120.00 including VAT contains £20.00 VAT and £100.00 before VAT.
Calculation breakdown
£100.00 × 20% = £20.00 VAT
£100.00 + £20.00 = £120.00 gross
With quantity 1, line and final-total rounding give the same result.
US sales tax can include state, county and city rates. Confirm the exact rate with the relevant tax authority.
Results use two-decimal currency rounding. All calculations run privately in your browser.
Worked UK VAT examples
1
Add 20% VAT to £100
VAT: £100 × 20% = £20. Gross: £100 + £20 = £120.
Standard rate
2
Extract 20% VAT from £120
Net: £120 ÷ 1.20 = £100. VAT: £120 − £100 = £20.
VAT-inclusive price
3
Add the 5% reduced rate
For a qualifying £100 supply: £100 × 5% = £5 VAT, so the gross price is £105.
Qualifying supplies only
4
Use a custom rate
At 17.5%, £80 × 17.5% = £14 VAT, so £80 + £14 = £94 gross.
Any rate from 0% to 100%
5
Why “minus 20%” is wrong
Subtracting 20% from £120 gives £96, not the £100 net price. The £20 VAT is one sixth of £120 because 20 ÷ 120 = 1 ÷ 6.
Divide by 1.20
How to calculate UK VAT
Enter the amount first. Choose Add VAT to turn a net price into a gross price, or Remove VAT to extract VAT from a gross price. Select 20%, 5%, 0% or a custom rate.
At 20%: multiply net by 1.20 to add VAT, or divide gross by 1.20 to remove it.
Choosing the right UK rate
20% standard rate: applies to most UK goods and services.
5% reduced rate: applies only to specific qualifying supplies.
0% zero rate: applies to qualifying taxable supplies. It is not the same as exempt or outside scope.
The transaction, customer, location and use of a supply can affect its VAT treatment. This calculator performs arithmetic; it does not decide which treatment applies.
Methodology, sources and review
Method: Adding VAT multiplies the net amount by the selected rate. Removing VAT divides the gross amount by 1 plus that rate. Currency results are rounded to two decimal places using the selected invoice method.
Last reviewed: 15 July 2026. Checked by: Starlight Tools editorial team.
Limits: This is an arithmetic aid, not tax, accounting or legal advice. It cannot determine the correct VAT treatment, place of supply, exemptions, registration duties or recoverability. Verify the exact transaction with HMRC, the relevant tax authority or a qualified adviser.
UK VAT calculator FAQs
What is the current UK VAT rate?
The standard UK VAT rate is 20%. A 5% reduced rate and 0% zero rate apply only to qualifying goods and services.
How do I add 20% VAT?
Multiply the net price by 1.20. For example, £100 × 1.20 = £120 gross, including £20 VAT.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1 plus the VAT rate. At 20%, divide by 1.20: £120 ÷ 1.20 = £100 net.
What is the difference between net and gross?
Net is the price before VAT. Gross is the price including VAT. The difference between them is the VAT amount.
Why is 20% VAT one sixth of the gross price?
A 20% rate adds £20 to each £100 net, making £120 gross. The £20 VAT is therefore 20/120, or one sixth, of the gross price.
When does the 5% UK VAT rate apply?
The 5% reduced rate applies only to specified qualifying supplies, such as some domestic energy and children's car seats. Check current HMRC guidance for the exact transaction.
Is zero-rated the same as VAT-exempt?
No. Zero-rated supplies are taxable supplies charged at 0%, while exempt supplies are not taxable supplies. Outside-scope transactions are different again.
Can I use a custom VAT rate?
Yes. Choose Custom and enter any rate from 0% to 100%. Confirm that the rate is legally correct for the supply and jurisdiction.
Why can invoice rounding differ by a penny?
Rounding VAT on each invoice line can produce a different total from calculating VAT on the unrounded final total. Use the invoice options to compare both methods.
Does this calculator determine whether VAT applies?
No. It calculates the rate you choose but cannot classify a supply, establish its place of supply or determine VAT liability. Seek professional advice when needed.
