This calculator is set to the reduced UK VAT rate of 5%. Enter an amount, then choose add VAT or remove VAT to see the net, VAT and gross figures.
[ Tool sits here, rate fixed at 5%: amount field, Add VAT / Remove VAT, output Net, VAT, Gross. ] (tool embeds here)
Working out 5% VAT
- To add 5% VAT, multiply the net price by 1.05.
- To remove 5% VAT, divide the gross price by 1.05.
Add VAT example £500 times 1.05 = £525 gross. The VAT is £25.
Remove VAT example £525 divided by 1.05 = £500 net. The VAT is £25.
What the 5% rate covers
The reduced rate of 5% applies to certain goods and services, such as:
- Gas and electricity for your home
- Children’s car seats and booster seats
- Mobility aids fitted for older people
- Products that help people stop smoking
The full list of reduced rate items is on GOV.UK.
5% VAT at common amounts
| Net price | VAT at 5% | Gross price |
|---|---|---|
| £100 | £5 | £105 |
| £500 | £25 | £525 |
| £1,000 | £50 | £1,050 |
Frequently asked questions
How do I calculate 5% VAT? Multiply the net price by 1.05 to add it, or divide the gross price by 1.05 to remove it.
How much is 5% VAT on £1,000? £1,000 times 1.05 is £1,050, so the VAT is £50.
What is charged at 5% VAT? Home gas and electricity, children’s car seats, mobility aids for older people and smoking cessation products are common examples.
Is home energy charged at 5% VAT? Yes. Gas and electricity for domestic use are charged at the reduced rate of 5%.