An add VAT calculator takes a net price and works out the VAT and the gross price. Enter the amount before VAT, pick the rate, and you get the total the customer pays.
[ Add VAT tool sits here: amount field (net, before VAT), rate choice of 20%, 5% or 0%, output shows VAT and Gross. ] (tool embeds here)
How to add VAT by hand
Multiply the net price by the VAT fraction for your rate.
- At 20%: net price times 1.2
- At 5%: net price times 1.05
Example at 20% Net price £500. £500 times 1.2 = £600 gross. The VAT is £100.
Example at 5% Net price £500. £500 times 1.05 = £525 gross. The VAT is £25.
When you add VAT
You add VAT when you start with a price before tax and need the total to charge. This comes up when you:
- Raise an invoice for a client
- Quote a price for a job
- Set the shelf price for a product
- Work out the full cost of something you plan to buy
Add VAT at a glance
| Net price | VAT at 20% | Gross price |
|---|---|---|
| £100 | £20 | £120 |
| £250 | £50 | £300 |
| £1,000 | £200 | £1,200 |
Frequently asked questions
How do I add VAT to a price? Multiply the net price by 1.2 at the standard rate, or by 1.05 at the reduced rate.
How much is 20% VAT on £100? £100 times 1.2 is £120, so the VAT is £20.
What is the difference between adding and removing VAT? Adding VAT starts with a net price and gives the gross total. Removing VAT starts with a gross price and gives the net amount.
Do I charge VAT if I am not registered? No. You only charge VAT once your business is VAT registered.