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VAT Calculator

Add or remove 20% VAT from a price — handy for invoices, quotes and checking receipts.

Inputs

GBP
%
The UK standard VAT rate is 20%. A reduced rate of 5% applies to some goods (e.g. domestic energy, children's car seats) and 0% to zero-rated items (most food, children's clothes, books). Businesses must register for VAT once taxable turnover exceeds £90,000.

Gross (incl. VAT)

Net + 20% VAT
£0

How VAT works

VAT (Value Added Tax) is a consumption tax charged on most goods and services, at a standard rate of 20%. To add VAT, multiply the net amount by 1.2. To remove VAT from a gross (VAT-inclusive) price, divide by 1.2 to get the net; the VAT element is the gross × 1/6 (that is, 20/120).

Only VAT-registered businesses charge VAT, and they can reclaim VAT paid on their own purchases (input tax), so VAT is effectively borne by the final consumer. Registration is compulsory once taxable turnover passes £90,000 in a 12-month period; smaller businesses may register voluntarily.

FAQ

What is the standard VAT rate?
20%. Reduced (5%) and zero (0%) rates apply to specific goods and services.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.2 for the net amount. The VAT portion is the gross price multiplied by 1/6.
When must a business register?
When VAT-taxable turnover exceeds £90,000 in any rolling 12 months, or is expected to in the next 30 days.
Is everything subject to VAT?
No. Many essentials are zero-rated (most food, books, children's clothes) and some supplies (e.g. certain financial services, insurance) are exempt.