UK VAT calculator

Short answer: UK VAT is 20% standard, 5% reduced and 0% zero-rated. To add 20% VAT multiply by 1.2; to remove it divide by 1.2 (so £120 gross is £100 net plus £20 VAT).

Last updated: · Last checked against GOV.UK: · Markdown version

General information, not tax or financial advice. Check GOV.UK or speak to a qualified adviser about your own situation.

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To take VAT out of a gross price at 20%, divide by 1.2. Don't just subtract 20%.

Checking whether you need to register? Use the VAT threshold checker (£90,000). Source: GOV.UK.

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What is the formula, in plain text?

Add VAT: gross = net × (1 + rate). Remove VAT: net = gross ÷ (1 + rate); VAT = gross − net. At 20%, divide a VAT-inclusive price by 1.2 (do not subtract 20%).

What rates and thresholds apply?

RateApplies to
20% standardMost goods and services
5% reducedSome goods and services, e.g. home energy, children's car seats
0% zeroZero-rated goods, e.g. most food and children's clothes

What are some worked examples?

Starting amountActionNetVATGross
£100.00Add 20%£100.00£20.00£120.00
£120.00Remove 20%£100.00£20.00£120.00
£99.99Remove 20%£83.33£16.67£99.99
£200.00Add 5%£200.00£10.00£210.00

VAT registration threshold: £90,000 taxable turnover over a rolling 12 months (see the VAT threshold checker).

GOV.UK sources (checked 15 October 2026): https://www.gov.uk/vat-rates · https://www.gov.uk/vat-registration/when-to-register

Machine-readable rates: api/rates-2026-27.json.