VAT Calculator UK: Add or Remove VAT from a Price
This VAT calculator for the UK adds VAT to a net price or removes it from a VAT-inclusive total at 20%, 5% or 0%, for shoppers, sole traders and VAT-registered businesses. To add 20% VAT multiply by 1.2; to remove it divide by 1.2, or take 1/6 of the total as the VAT.
Updated . Built and checked by My Easy Calculator against HMRC VAT rates, VAT Notice 700 rounding rules and the Flat Rate Scheme guidance. How we check figures
| UK VAT rates | |
| Standard rate | 20% |
| Reduced rate | 5% |
| Zero rate | 0% |
| VAT fraction (from a total) | |
| At 20% | 1/6 |
| At 5% | 1/21 |
| Thresholds, 2026/27 | |
| Registration | £90,000 |
| Deregistration | £88,000 |
| Flat Rate Scheme entry | £150,000 |
Calculate VATAdd VAT, remove VAT, work back from a VAT amount, or total an invoice
- UK rates 2026/27
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Your VAT 20% standard rate
The same amount at each UK rate
| Rate | Net | VAT | Gross |
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See each line
| Line | Net | VAT | Gross |
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Figures update as you type. VAT treatment depends on what you sell: check GOV.UK or an adviser.
To add 20% VAT to £250, multiply by 1.2: £250 x 1.2 = £300, of which £50 is VAT. To remove VAT from £540, divide by 1.2: £540 / 1.2 = £450 before VAT, so the VAT is £90 (one sixth of £540).
Do you need to register for VAT?
Check your taxable turnover against the £90,000 threshold.
See how close you are to the threshold.
Flat Rate Scheme or standard VAT?
For VAT-registered small businesses selling at 20%.
Compare the VAT you would pay under each scheme.
UK VAT rates at a glance
The UK has three VAT rates in 2026/27: the standard rate of 20%, the reduced rate of 5% and the zero rate of 0%. Businesses must register for VAT once taxable turnover goes over £90,000 in a rolling 12 months, a threshold that has not changed since .
| Rate | Applies to | To add VAT | To remove VAT | VAT fraction |
|---|---|---|---|---|
| Standard 20% | Most goods and services | x 1.2 | / 1.2 | 1/6 |
| Reduced 5% | Some goods and services, such as home energy | x 1.05 | / 1.05 | 1/21 |
| Zero 0% | Zero-rated goods, such as most food and children's clothes | No VAT | No VAT | None |
| Exempt | Exempt supplies, such as insurance | No VAT | No VAT | None |
How much is 20% VAT on £100?
20% VAT on £100 is £20, making £120 in total. To add VAT, multiply the net price by 1.2. To find the VAT inside a £120 total, divide by 6 (£20), or divide the total by 1.2 to get the price before VAT (£100). Never take 20% off a VAT-inclusive price: 20% of £120 is £24, which is wrong.
How to calculate VAT
VAT is calculated as a percentage of the price before VAT. Adding it means multiplying by 1 plus the rate; removing it means dividing by the same number. The VAT element of a VAT-inclusive price is the rate divided by 100 plus the rate, which HMRC calls the VAT fraction.
Add VAT to a net price
Gross = net x (1 + rate). At 20%: £250 x 1.2 = £300. At 5%: £250 x 1.05 = £262.50.
Remove VAT from a gross price
Net = gross / (1 + rate). At 20%: £300 / 1.2 = £250. At 5%: £262.50 / 1.05 = £250.
Calculate the VAT element
VAT = gross x rate / (100 + rate). At 20% that is one sixth (20/120): £300 / 6 = £50. At 5% it is one twenty-first (5/105): £262.50 / 21 = £12.50. From a VAT amount, net = VAT / rate: £50 / 0.2 = £250.
Choose the correct rate
The rate depends on what is being sold, not on the seller. Most goods and services are standard-rated at 20%, but some are reduced-rated, zero-rated, exempt or outside the scope of VAT. Check HMRC's rates of VAT on different goods and services before you choose.
How to use the VAT calculator
The VAT calculator has four modes, and every result updates as you type. Each one shows the price without VAT, the VAT and the total with VAT.
- Pick what you want to do: add VAT to a net price, remove VAT from a VAT-inclusive price, work back from a VAT amount on a receipt, or total a whole invoice.
- Enter the amount in pounds and pence.
- Choose the rate: 20%, 5%, 0%, or another rate such as 17.5% for old prices or a different country's rate.
- For an invoice, say whether your prices include VAT, add up to 20 lines with their own quantity, price and rate, and choose a rounding method.
- Read the result, including the formula, the same amount at each UK rate, and, for invoices, totals by rate and a comparison of rounding methods.
- Download a PDF or CSV, or copy a link. The two business tools below the calculator check the registration threshold and compare the Flat Rate Scheme.
VAT calculator examples
These examples come from the same calculation the calculator uses, rounded to the nearest penny.
Add VAT to £250
£250 x 1.2 = £300.00. The VAT is £250 x 0.2 = £50.00. Use this when quoting a price to a customer.
Remove VAT from £540
£540 / 1.2 = £450.00, so the VAT is £90.00, which is one sixth of £540. Taking 20% off would wrongly give £432.
A £126 home energy bill
Domestic energy is reduced-rated at 5%. £126 / 1.05 = £120.00 before VAT, and the VAT is £6.00, which is one twenty-first of the bill.
A receipt showing £37.50 VAT
£37.50 / 0.2 = £187.50 before VAT, so the total paid was £187.50 + £37.50 = £225.00.
Mixed-rate invoice
6 hours at £85 (20%), a £120 child car seat (5%) and 3 books at £12.50 (0%): £667.50 net, £102.00 + £6.00 VAT, £775.50 total.
Consultant with few goods
£60,000 turnover with £600 of goods makes a limited cost business: 16.5% = £9,900.00, against £9,200.00 under standard VAT. With £1,500 of goods the 14% rate gives £8,400.00, a saving of £800.00.
Quick VAT tables
Use these tables for common amounts at the 20% standard rate. For any other figure, type it into the calculator.
Adding 20% VAT
| Price before VAT | VAT at 20% | Total with VAT |
|---|---|---|
| £1.00 | £0.20 | £1.20 |
| £5.00 | £1.00 | £6.00 |
| £10.00 | £2.00 | £12.00 |
| £20.00 | £4.00 | £24.00 |
| £50.00 | £10.00 | £60.00 |
| £100.00 | £20.00 | £120.00 |
| £150.00 | £30.00 | £180.00 |
| £200.00 | £40.00 | £240.00 |
| £250.00 | £50.00 | £300.00 |
| £300.00 | £60.00 | £360.00 |
| £500.00 | £100.00 | £600.00 |
| £750.00 | £150.00 | £900.00 |
| £1,000.00 | £200.00 | £1,200.00 |
| £1,500.00 | £300.00 | £1,800.00 |
| £2,000.00 | £400.00 | £2,400.00 |
| £2,500.00 | £500.00 | £3,000.00 |
| £4,000.00 | £800.00 | £4,800.00 |
| £5,000.00 | £1,000.00 | £6,000.00 |
| £10,000.00 | £2,000.00 | £12,000.00 |
Removing 20% VAT
| Total with VAT | Price before VAT | VAT included |
|---|---|---|
| £1.00 | £0.83 | £0.17 |
| £6.00 | £5.00 | £1.00 |
| £10.00 | £8.33 | £1.67 |
| £12.00 | £10.00 | £2.00 |
| £20.00 | £16.67 | £3.33 |
| £24.00 | £20.00 | £4.00 |
| £50.00 | £41.67 | £8.33 |
| £60.00 | £50.00 | £10.00 |
| £100.00 | £83.33 | £16.67 |
| £120.00 | £100.00 | £20.00 |
| £250.00 | £208.33 | £41.67 |
| £500.00 | £416.67 | £83.33 |
| £600.00 | £500.00 | £100.00 |
| £1,000.00 | £833.33 | £166.67 |
| £1,200.00 | £1,000.00 | £200.00 |
| £2,000.00 | £1,666.67 | £333.33 |
| £5,000.00 | £4,166.67 | £833.33 |
| £6,000.00 | £5,000.00 | £1,000.00 |
| £10,000.00 | £8,333.33 | £1,666.67 |
UK VAT rates explained
Every sale by a VAT-registered business is standard-rated, reduced-rated, zero-rated, exempt or outside the scope of VAT. The table gives common examples from HMRC guidance; many items have conditions, so check the guidance for your product.
| Treatment | Examples | VAT charged | Seller can reclaim VAT on costs? |
|---|---|---|---|
| Standard 20% | Most goods and services, adult clothing and shoes, alcohol, hot takeaway food, private school fees (since 1 January 2025) | 20% | Yes |
| Reduced 5% | Domestic gas and electricity, children's car seats, smoking cessation products, some mobility aids installed for people aged 60 or over | 5% | Yes |
| Zero 0% | Most food, children's clothes and shoes, books and newspapers, women's sanitary products, most public transport | 0% | Yes |
| Exempt | Insurance, most financial services, Royal Mail universal postal services, most health care from registered professionals | None | Usually no |
| Outside the scope | Wages, statutory fees such as MOT certificates, donations where nothing is given in return | None | Not applicable |
Zero-rated vs exempt supplies
Zero-rated and exempt sales both carry no VAT for the customer, but they are treated differently for the seller. Zero-rated sales are taxable at 0%, count towards the £90,000 threshold and let a registered business reclaim VAT on its costs. Exempt sales are not taxable, do not count towards the threshold and usually stop you reclaiming the VAT on related costs.
VAT-inclusive vs VAT-exclusive prices
A VAT-exclusive (net) price is the price before VAT; a VAT-inclusive (gross) price already contains the VAT. Shops must show prices to consumers including VAT, while business-to-business quotes are often net.
| Term | Means | £100 net at 20% |
|---|---|---|
| Net, ex VAT, excluding VAT, plus VAT | Price before VAT | £100.00 |
| VAT, VAT element, output VAT | The tax added | £20.00 |
| Gross, inc VAT, including VAT | Price the customer pays | £120.00 |
"£5,000 plus VAT" means £5,000 net, so the customer pays £6,000 at 20%. "£5,000 including VAT" means the VAT is already inside: £4,166.67 net and £833.33 VAT.
Which VAT rate should you use?
Use the rate HMRC sets for what you are selling, and do not choose a rate just because the calculator offers it. The calculator does arithmetic; it does not decide whether something is standard-rated, reduced-rated, zero-rated or exempt.
If you are not VAT registered you must not charge VAT at all, even if your supplier charged you VAT. If you sell a mix of goods, each line can carry a different rate; use Invoice mode. For complex cases such as construction, property, land, international services or the domestic reverse charge, check HMRC guidance or ask an accountant.
VAT on invoices and multiple items
On an invoice with several lines, VAT can be worked out line by line or on the invoice total, and the two can differ by a penny or more. HMRC VAT Notice 700 (paragraph 17.5) allows invoice traders three methods, and you should use one consistently.
| Method | How it works | VAT | Invoice total |
|---|---|---|---|
| Each line to the nearest penny | Work out VAT per line, round each to 1p, add them up | £8.06 | £48.33 |
| Lines down to 0.1p, total down to 1p | Round each line down to a tenth of a penny, then round the total down | £8.05 | £48.32 |
| Invoice total rounded down | Work out VAT on the whole invoice and round it down to 1p | £8.05 | £48.32 |
Rounding down is a concession for invoice traders whose prices exclude VAT. If your prices include VAT, as most shops' do, HMRC expects normal rounding, not rounding down. The calculator's Invoice mode shows all the methods side by side for your own lines.
What a VAT invoice must show
A full VAT invoice must show a unique invoice number, your name, address and VAT registration number, the invoice date and time of supply, the customer's name and address, a description of each item, the price excluding VAT, the VAT rate and amount for each rate, and the total VAT. For sales of £250 or less including VAT, a simplified invoice is allowed.
VAT registration threshold
You must register for VAT if your VAT-taxable turnover goes over £90,000 in any rolling 12-month period, or if you expect it to go over £90,000 in the next 30 days alone. You can cancel your registration if you expect taxable turnover to fall below £88,000 in the next 12 months.
After going over the threshold in a rolling 12 months, you must tell HMRC within 30 days of the end of that month, and your registration starts on the first day of the second month after. Turnover means the total of sales that are not exempt, including zero-rated sales, excluding VAT. The threshold checker below the calculator shows how close you are.
VAT Flat Rate Scheme
Under the Flat Rate Scheme you charge customers the normal rate of VAT but pay HMRC a fixed percentage of your VAT-inclusive turnover, and you cannot usually reclaim VAT on costs. You can join if you expect taxable turnover of £150,000 or less, excluding VAT, in the next 12 months, and must leave if total income goes over £230,000 including VAT.
Each trade has its own percentage: 14.5% for accountancy, IT consultancy and legal services, 14% for management consultancy, 12% for estate agency and 11% for photography or advertising. You get 1% off in your first year of VAT registration. If you spend less than 2% of turnover, or less than £1,000 a year, on goods, you are a limited cost business and must use 16.5%, which is often more than standard VAT.
What changed for VAT in 2026
VAT rates did not change in 2026: 20% has been the standard rate since . The registration threshold stayed at £90,000 and deregistration at £88,000 for 2026/27, despite speculation that it might be cut.
The biggest change ahead is electronic invoicing. On the government confirmed that UK e-invoicing will run on the Peppol network, and structured e-invoices become compulsory for business-to-business and business-to-government VAT invoices from . Private school fees have carried 20% VAT since .
How our VAT calculation works
The calculator works in whole pence, so there are no rounding errors from decimal arithmetic. Add VAT multiplies by the rate and rounds the VAT to the nearest penny; Remove VAT takes the VAT fraction of the total, rounds it to the nearest penny and subtracts it; From VAT amount divides the VAT by the rate. Invoice mode applies the rounding method you choose.
It does not decide which rate applies, whether you must register, or whether you can reclaim VAT, and it does not cover margin schemes, the domestic reverse charge, partial exemption or imports. The Flat Rate Scheme tool assumes all sales are standard-rated at 20%.
The calculator gives arithmetic, not tax advice. Check HMRC guidance or speak to an accountant before you set prices, charge VAT or decide on a VAT scheme.
Common VAT mistakes
The most common VAT mistake is removing VAT by taking 20% off the total. These are the errors that cost businesses and buyers most often.
- Taking 20% off a gross price. 20% of £120 is £24, but the VAT is £20. Divide by 1.2 or take one sixth.
- Charging VAT when not registered. Only VAT-registered businesses can charge VAT.
- Treating exempt as zero-rated. Exempt sales do not count towards the threshold and block input VAT recovery.
- Missing the 30-day forward test. One large contract can force registration before your 12-month total passes £90,000.
- Mixing rounding methods. Pick one HMRC method and use it on every invoice.
- Joining the Flat Rate Scheme as a limited cost business. At 16.5% you may pay more than under standard VAT.
Frequently asked questions
Divide the VAT-inclusive price by 1.2 for 20% VAT, or by 1.05 for 5% VAT. For example, £540 / 1.2 = £450 before VAT, so the VAT is £90. You can also find the VAT directly by dividing a 20% price by 6, or a 5% price by 21.
VAT is always calculated on the net price, the amount before VAT. That is why adding 20% to £100 gives £120, but taking 20% off £120 gives £96 rather than £100. To go back from a gross price, divide by 1.2.
Both mean the customer pays no VAT, but zero-rated sales are taxable at 0%, count towards the £90,000 registration threshold and let the seller reclaim VAT on costs. Exempt sales are outside the VAT charge, do not count towards the threshold and usually block the reclaim of related input VAT.
It depends on exactly what you sell and sometimes who you sell to. Most goods and services are 20%; HMRC publishes a list of items at 5%, 0% and exempt with their conditions. The calculator does the arithmetic once you know the rate, but it does not classify products.
Yes. Choose Invoice mode to enter up to 20 lines with their own quantity, price and VAT rate, then pick one of the rounding methods HMRC allows. It shows net, VAT and gross totals for each rate and the invoice, which you can download as a PDF or CSV.
At 20%, the VAT on £1,000 is £200, making £1,200. If £1,000 already includes VAT, the price before VAT is £833.33 and the VAT is £166.67. At 5%, the VAT on £1,000 is £50.
No. Only VAT-registered businesses can charge VAT and must show a VAT registration number on their invoices. If you are below the £90,000 threshold and not registered, you charge your normal price with no VAT added.
A VAT-registered business can usually reclaim VAT on goods and services bought for business use, as long as it has a valid VAT invoice and the costs relate to taxable sales. You cannot reclaim VAT if you are not registered, and some items, such as business entertainment, are blocked.
No. The standard rate rose from 17.5% to 20% on 4 January 2011 and has not changed since. Choose Other and enter 17.5 only if you need to check an old price or invoice.
Goods exported from Great Britain to outside the UK are usually zero-rated if you keep evidence of export. Services sold abroad follow place-of-supply rules and are often outside the scope of UK VAT. Check HMRC guidance for your situation.
Sources
- VAT rates, HM Revenue and Customs. Checked .
- Rates of VAT on different goods and services, HMRC. Checked .
- VAT guide (VAT Notice 700), paragraph 17.5 rounding, HMRC. Checked .
- VAT Trader Records manual VATREC12010: the rounding concession, HMRC. Checked .
- VAT registration: when to register, HMRC. Checked .
- VAT Flat Rate Scheme: how much you pay and FRS7300 flat rate percentages by sector, HMRC. Checked .
- Charge, reclaim and record VAT, HMRC. Checked .
- Legislation: Value Added Tax Act 1994; Value Added Tax Regulations 1995 (SI 1995/2518), Part V (invoices) and Part VIIA (Flat Rate Scheme).
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Disclaimer
Calculation methodology sourced from official government publications. See our Editorial Policy for how we build and maintain our calculators.
Results are arithmetic for planning, not tax advice. The correct VAT rate, registration and scheme depend on your goods, services and circumstances. Check HMRC guidance or speak to an accountant before acting on a result.