Work out VAT on any price in seconds. Type an amount, pick the rate, then choose add VAT or remove VAT. You get the net price, the VAT amount and the gross price right away.
VAT calculator
How to use this calculator
- Type your amount in pounds.
- Pick the rate. The standard rate is 20%. The reduced rate is 5%. The zero rate is 0%.
- Choose Add VAT if your amount is before VAT. Choose Remove VAT if your amount already includes VAT.
- Read the three figures: net, VAT and gross.
The net price is the price before VAT. The gross price is the price after VAT is added. The VAT amount is the gap between the two.
How to work out VAT
To add VAT at the standard rate, multiply the net price by 1.2. To take VAT off, divide the gross price by 1.2.
Add VAT (net to gross) net price times 1.2 = gross price. Example: £500 times 1.2 = £600. The VAT is £100.
Remove VAT (gross to net) gross price divided by 1.2 = net price. Example: £600 divided by 1.2 = £500. The VAT is £100.
For the reduced rate, use 1.05 instead of 1.2.
A fast check at the standard rate: the VAT is one sixth of the gross price. So £600 divided by 6 is £100.
One common mistake is taking 20% off a gross price to remove VAT. That gives the wrong answer. £600 minus 20% is £480, not £500. VAT is worked out on the net price, so you divide by 1.2 rather than subtract.
How much is VAT on common amounts
At the standard rate of 20%, the VAT on a net price looks like this.
| Net price | VAT at 20% | Gross price |
|---|---|---|
| £50 | £10 | £60 |
| £100 | £20 | £120 |
| £500 | £100 | £600 |
| £1,000 | £200 | £1,200 |
UK VAT rates
There are three VAT rates in the UK, plus a group of items that carry no VAT at all.
| Rate | Figure | Applies to |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced | 5% | Home energy, children’s car seats, some building work |
| Zero | 0% | Most food, books, newspapers, children’s clothes |
| Exempt | No VAT | Insurance, finance, education, health services |
Zero rated is not the same as exempt. A zero rated sale still sits inside the VAT system, so a VAT registered business can still claim back the VAT on its costs. An exempt sale sits outside VAT, so that business usually cannot claim the VAT on its related costs back.
Rates are set by HMRC and can change. See our full UK VAT rates guide, or check the current list on GOV.UK.
What VAT is
VAT stands for value added tax. It is a tax on most goods and services sold in the UK. A business that is VAT registered adds it to the price, collects it from the customer, then pays it to HMRC. The customer carries the cost, much like a sales tax paid at the till.
The standard rate has been 20% since 4 January 2011.
[ Infographic: How VAT works ]
Brief: a simple three step flow showing a supplier, a VAT registered business, and the customer, with VAT added at the sale and passed on to HMRC.
Alt text: How VAT works in the UK, from supplier to business to customer, with VAT paid to HMRC.
Caption: The customer pays the VAT. The business collects it and passes it to HMRC.
Who this calculator is for
Plenty of people need a VAT figure fast. A freelancer checking an invoice. A shop owner pricing stock. A builder quoting a job. A buyer splitting the VAT out of a receipt for the books. This tool does the sum so you do not have to.
Do you need to register for VAT?
You must register for VAT once your taxable turnover goes over the £90,000 VAT registration threshold in any rolling 12 month period. This is not a tax year or a calendar year. It is the total for the last 12 months at any point.
You also have to register if you expect to go over £90,000 in the next 30 days on its own, for example after winning one large order.
Below £90,000 you can still register by choice. This is called voluntary registration. It can help if you sell mainly to other VAT registered firms, because they can claim the VAT back.
Frequently asked questions
What is the VAT rate in the UK? The standard rate is 20%. It has been 20% since 4 January 2011. A reduced rate of 5% and a zero rate of 0% apply to certain goods and services.
How do I add VAT to a price? Multiply the net price by 1.2 at the standard rate. For the reduced rate, multiply by 1.05.
How do I remove VAT from a price? Divide the gross price by 1.2 at the standard rate. For the reduced rate, divide by 1.05. Do not subtract 20%, as that gives the wrong figure.
How much is VAT on £100? At 20%, the VAT on £100 net is £20, so the gross price is £120. If £100 already includes VAT, the net price is £83.33 and the VAT is £16.67.
What is the difference between net and gross? Net is the price before VAT. Gross is the price after VAT is added.
Is this VAT calculator free? Yes. You can use it as often as you like, with no sign up and no account.
What is the VAT threshold? You must register for VAT once your taxable turnover passes £90,000 in any rolling 12 month period.