VAT calculator · add or remove VAT
VAT calculator – add or remove Value Added Tax
Work out VAT three ways: add VAT to a net price, dig the net price out of a gross one, or find just the VAT amount. The rates 20%, 5% and 0% are ready to use, and the reduced 12.5% rate is included for checking older hospitality invoices.
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UK VAT rates
The VAT rate depends on the goods or service being sold – not on who is selling. Below are the current rates and a couple of older ones you may need for checking historical invoices.
| Rate | Status | Applies to, among others | Multiplier |
|---|---|---|---|
| 20% | Standard rate | Most goods and services: electronics, adult clothing, fuel, professional services, hospitality, software | × 1.20 |
| 5% | Reduced rate | Domestic gas and electricity, children's car seats, certain energy-saving materials, mobility aids for the elderly | × 1.05 |
| 0% | Zero-rated | Most food, books, newspapers, children's clothing, public transport, new-build homes | × 1.00 |
| 12.5% | Old hospitality rate | Temporary rate for hospitality and tourism up to 31 March 2022 – for checking older invoices | × 1.125 |
| 17.5% | Old standard rate | The standard rate before 4 January 2011 | × 1.175 |
Zero-rated is not the same as exempt. Zero-rated goods still sit inside the VAT system – you charge VAT at 0% and can still reclaim input VAT on your costs. Exempt supplies (insurance, finance, education, health) fall outside the system, and you cannot reclaim input VAT on them.
Source: HMRC. Always check the current rate and category at gov.uk/vat-rates. This site is not an HMRC service and does not issue tax decisions.
VAT formulas: three calculations are enough
Add VAT to a net price
gross price = net price × (1 + rate / 100)
£100 × 1.20 = £120.00, of which £20.00 is VAT.
Remove VAT from a gross price
net price = gross price / (1 + rate / 100)
£120.00 / 1.20 = £100.00. This is where most mistakes happen: you do not subtract 20% from the gross price. If you did, you'd get £96 – four pounds wrong. A quick check at 20%: the VAT is exactly one-sixth of the gross (£120 × 1/6 = £20).
Just the VAT amount
VAT = net price × rate / 100
or from the gross price: VAT = gross − gross / (1 + rate / 100).
The VAT as a share of the gross price is about 16.7% at the 20% rate and about 4.8% at the 5% rate.
Examples at different rates
| Rate | Net | VAT | Gross | VAT share of gross |
|---|---|---|---|---|
| 20% | £100.00 | £20.00 | £120.00 | 16.67% |
| 5% | £100.00 | £5.00 | £105.00 | 4.76% |
| 0% | £100.00 | £0.00 | £100.00 | 0.00% |
Notice that the VAT as a share of the gross price is always smaller than the rate itself. The reason is simple: the rate is calculated from the net price, which is a smaller number than the gross. This often confuses people trying to work out the VAT rate from a receipt.
Checklist for businesses and invoicing
- Choose the rate by what you sell. The same business can sell at different rates – for example a restaurant charges 20% on a meal but zero-rates certain cold takeaway food.
- Round to the penny. The VAT amount is rounded to the nearest penny. On a multi-line invoice the sum of the line-by-line roundings can differ from the total by a few pence.
- Check the tax point. The VAT rate follows the tax point (usually the date of supply), not necessarily the invoice date.
- Remember the registration threshold. This is a monetary limit that changes separately – check the current figure on GOV.UK.
- Break the invoice down clearly: net price, VAT rate, VAT amount and gross total. The calculator's result gives these ready to copy.
VAT or Income Tax – which one are you after?
A fuller walk-through of reverse calculation is in the guide VAT and the net price backwards. The word "tax" means two very different things. VAT is a consumption tax added to the price of goods or services – it affects the seller and the buyer. Income Tax is a personal tax deducted from your pay, depending on your income and allowances.
If you're looking for something to do with pay, go to the tax percentage calculator or the salary percentage calculator. For an official estimate of your own tax position, use HMRC's own service.
The basics of VAT calculation
VAT is calculated from the net price. That's why you don't subtract the rate from the gross price but divide by the VAT multiplier.
Formulas and examples
VAT onto a net price
gross = net × (1 + rate / 100)Example
£100 at the standard rate: 100 × 1.20 = £120.00.
Note
The multiplier 1.20 is the VAT multiplier for the 20% rate.
VAT off a gross price
net = gross / (1 + rate / 100)Example
£120.00: 120.00 / 1.20 = £100.00.
Note
The most common error is to subtract 20% directly – the result would be £96, i.e. wrong.
VAT amount
VAT = net × rate / 100Example
From £340.50 gross at 20%: VAT is £56.75.
Note
The VAT share of the gross price is always smaller than the rate.
VAT share of the gross
rate / (100 + rate) × 100Example
20% → 16.6667%, 5% → 4.7619%.
Note
These fractions are used in till systems. Round only the final result.
Concepts and classification
| Standard rate 20% | Most goods and services. In force since 4 January 2011. |
|---|---|
| Reduced rate 5% | Domestic fuel and power, children's car seats, certain energy-saving materials, mobility aids. |
| Zero rate 0% | Most food, books, newspapers, children's clothing, public transport. |
| Exempt | Insurance, finance, education, health – outside the VAT system; input VAT cannot be reclaimed. |
| VAT multiplier | The number the net price is multiplied by: 1 + rate / 100. |
Limitations of the calculator
- The calculator does not decide which rate applies to your sale – that choice is the user's responsibility.
- The VAT rate follows the tax point (usually the date of supply), not the invoice date.
- Registration thresholds, the flat-rate scheme and the reverse charge are not taken into account.
- The calculator is not an HMRC service and does not give binding interpretations.
How up to date the information is
When it was checked
Content and the percentages used were checked on 12 August 2026.
Disclaimer
The calculator gives a mathematical result from the numbers you enter. It is not an official decision, an offer or professional advice. See the terms of use.
Topics
This calculator belongs to the following topic areas. On the topic page you'll find all the calculators and guides on the same theme in one place.
Other calculators for businesses and invoicing
Frequently asked questions about the VAT calculator
How do I work out VAT from a net price?
Multiply the net price by the rate: net × rate / 100. At the standard 20% rate, £100 net has 100 × 0.20 = £20 of VAT, so the gross price is £120.
How do I remove VAT from a price backwards?
Divide the gross price by the VAT multiplier: gross / (1 + rate/100). For example 120 / 1.2 = £100. A common mistake is to subtract 20% straight from the gross – that gives too small a net figure. At 20% the VAT is one-sixth of the gross.
What are the UK VAT rates right now?
The standard rate is 20% and applies to most goods and services. The reduced rate is 5% (domestic fuel and power, children's car seats, certain energy-saving materials). The zero rate is 0% (most food, books, newspapers, children's clothing). Always check the category on GOV.UK.
Which rate do I use if the invoice is from a different year than the supply?
The VAT rate follows the tax point, which is usually the date of supply, not the invoice date. The calculator includes older rates so you can check historical invoices.
Why is the VAT share of the gross price not 20%?
Because the rate is calculated from the net price. When the net is £100 and the VAT is £20, the gross is £120. The VAT as a share of the gross is 20 / 120 = 16.67%. Both numbers are correct – they just describe different ratios.
Is this HMRC's official VAT calculator?
No. This is an independent calculator that does the maths on the numbers you enter. HMRC has its own guidance and tools on GOV.UK. Use those when you file a VAT return or need a binding interpretation.