Add or remove VAT at standard, reduced, or zero rates for UK goods and services.
This calculator provides estimates for guidance only. It does not constitute financial or tax advice. VAT rates may vary for specific goods and services. Always verify with HMRC or a qualified tax adviser.
Value Added Tax (VAT) is a consumption tax applied to most goods and services sold in the United Kingdom. At the standard rate of 20%, it is one of the most significant taxes affecting both consumers and businesses. VAT is charged at each stage of the supply chain, but the end consumer ultimately bears the cost. If you are shopping, quoting for work, or running a business, understanding how to add or remove VAT is essential. The UK has three main VAT rates. The standard rate of 20% applies to most goods and services. The reduced rate of 5% applies to certain items such as domestic fuel, children's car seats, and some energy-saving materials. The zero rate (0%) applies to most food, children's clothing, books, and newspapers -- these items are VAT-registered but charged at zero percent. For VAT-registered businesses with a taxable turnover above GBP 90,000 (the 2026-27 threshold), VAT must be charged on sales and can be reclaimed on business purchases. Getting VAT calculations right is crucial for invoicing, pricing, and completing VAT returns. This calculator handles both adding VAT to a net price and removing VAT from a gross (VAT-inclusive) price.
Using the VAT calculator: 1. Enter the amount. If you want to add VAT, enter the net (pre-VAT) price. If you want to remove VAT, enter the gross (VAT-inclusive) price. 2. Select the calculation type. Choose "Add VAT" to calculate the gross price from a net amount, or "Remove VAT" to find the net price and VAT component within a gross amount. 3. Choose the VAT rate. The standard rate is 20% and applies to most goods and services. Select "Reduced (5%)" for items like domestic energy or "Zero (0%)" if you need to confirm a zero-rated calculation. 4. View the results, which show the net amount, the VAT amount, and the gross amount. For "Add VAT", the net amount matches your input and the gross amount is the total including VAT. For "Remove VAT", the gross amount matches your input and the net and VAT amounts are extracted from it.
The VAT calculation depends on whether you are adding or removing VAT. To add VAT: the VAT amount is calculated as the net price multiplied by the VAT rate (expressed as a decimal). For the standard 20% rate, VAT = Net x 0.20. The gross price is then Net + VAT, or equivalently Net x 1.20. To remove VAT from a gross price: the net amount is the gross price divided by (1 + VAT rate). For the standard rate, Net = Gross / 1.20. The VAT component is then Gross - Net. For example, a net price of GBP 100 with standard 20% VAT gives GBP 20 VAT and GBP 120 gross. Conversely, if a receipt shows GBP 120 inclusive of VAT, the net amount is GBP 100 and the VAT is GBP 20. The reduced rate works identically but with 5% instead of 20%. A GBP 100 net amount at 5% gives GBP 5 VAT and GBP 105 gross. To extract VAT from a GBP 105 inclusive price, divide by 1.05 to get GBP 100 net. The "Remove VAT" formula is particularly useful when you receive a receipt or invoice that shows only the VAT-inclusive total and you need to know the net amount for accounting purposes, expense claims, or VAT return preparation.
VAT rates and the registration threshold are set by HMRC. The current registration threshold is GBP 90,000 for the 2026-27 tax year. Some goods and services are exempt from VAT entirely (such as financial services, insurance, and education), which is different from zero-rated items. Exempt supplies do not appear on VAT returns. For complex VAT situations involving partial exemption, reverse charges, or cross-border transactions, consult a qualified accountant or VAT specialist.