Calculators

VAT Calculator

Add VAT to a net price or take it out of a gross one, at UK, EU, Gulf or any other rate.

How it works

Adding VAT multiplies the net price by the rate. Removing it divides the gross price by one plus the rate, because the VAT was charged on the net price, not the gross. At 20%, VAT is one sixth of a gross price, not a fifth.

VAT = net × rate | net = gross ÷ (1 + rate)
Net
The price before VAT
Gross
The price including VAT
VAT fraction
rate ÷ (100 + rate): 1/6 at 20%, 1/21 at 5%

Worked example

A £120 receipt that includes UK VAT at the standard 20% rate.

  1. 1Net: 120 ÷ 1.20 = 100.00
  2. 2VAT: 120 − 100 = 20.00
  3. 3Check: 100 × 20% = 20.00

£100.00 net plus £20.00 VAT. Taking 20% off £120 would wrongly give £24 of VAT.

Frequently asked questions

How do I remove VAT from a price?

Divide the gross price by 1 plus the rate. At 20% that is ÷ 1.2; at 5% it is ÷ 1.05. The difference between the gross and the result is the VAT.

What are the VAT rates in the UK?

20% is the standard rate. 5% applies to home energy, children's car seats and some energy-saving installations. 0% covers most food, children's clothes, books and newspapers. Some things, such as insurance and most education, are exempt.

What is the difference between zero-rated and exempt?

Both charge the customer no VAT. A business selling zero-rated goods still reclaims the VAT on its own costs, while a business making exempt supplies cannot. It matters for the seller, not for the price you pay.

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