VAT Calculator
Add or remove UK VAT in seconds. Enter any amount to see the net, the VAT and the gross at the 20% standard rate — or switch to the 5% reduced or 0% zero rate. Works in both directions.
VAT calculator
Add VAT to a net price or strip it out of a gross price.
Current rates and rules on GOV.UK.
What VAT is and how it works
Value Added Tax (VAT) is a consumption tax charged on most goods and services in the UK. It is collected at every stage of the supply chain but ultimately paid by the final consumer. The headline standard rate is 20%, which has applied since January 2011. Two lower rates also exist: a reduced rate of 5% on items like domestic gas and electricity, children's car seats and some energy-saving materials, and a zero rate of 0% covering most food, books and children's clothing. Knowing which rate applies — and whether a price already includes VAT — is the whole game.
To add 20% VAT, multiply the net by 1.20. To remove VAT from a gross price, divide by 1.20. The VAT element of a £120 gross price is £20; the net is £100.
Adding VAT to a net price
If you have a price before VAT — common on trade invoices and wholesale quotes — adding VAT is straightforward. At the standard rate you multiply by 1.20. A £250 net job becomes £300 gross, made up of £250 net and £50 VAT. At 5% you multiply by 1.05, and at 0% the gross equals the net. Our calculator shows all three lines so you can copy the right figure onto an invoice or a customer quote.
Removing VAT (reverse VAT)
More often you have the gross, VAT-inclusive price — the figure on a shop receipt — and need to find the net and the VAT inside it. This is reverse VAT. Divide the gross by 1.20 to get the net, then subtract to find the VAT. A £600 inclusive purchase contains £500 net and £100 VAT. A frequent mistake is to take 20% of the gross figure, which over-states the VAT; the correct VAT fraction of a 20%-inclusive price is one-sixth, not one-fifth.
VAT rates by type of goods
| Rate | Applies to |
|---|---|
| 20% standard | Most goods, electronics, adult clothing, restaurant meals, hot takeaways |
| 5% reduced | Domestic energy, children's car seats, mobility aids for older people |
| 0% zero | Most food, books, newspapers, children's clothes and shoes |
When a business must charge VAT
A business must register for VAT once its taxable turnover passes £90,000 in any rolling 12-month period (the threshold since April 2024). Once registered, it adds VAT to its sales (output VAT) and can reclaim VAT on its purchases (input VAT), paying HMRC the difference. Smaller businesses below the threshold can register voluntarily, which can be worthwhile if they sell mainly to other VAT-registered businesses. The full rules, rates and registration guidance are on GOV.UK.
Frequently asked questions
What is the UK VAT rate in 2025?
The standard UK VAT rate is 20%. A reduced rate of 5% applies to some goods such as domestic energy and children's car seats, and a 0% zero rate applies to most food and children's clothes.
How do I add 20% VAT to a price?
Multiply the net price by 1.20. So £100 plus VAT is £100 × 1.20 = £120, of which £20 is VAT.
How do I remove VAT from a gross price?
Divide the gross (VAT-inclusive) price by 1.20. So £120 including VAT gives a net of £120 ÷ 1.20 = £100, with £20 of VAT.
What is the VAT registration threshold?
A business must register for VAT once its taxable turnover exceeds £90,000 in any rolling 12-month period, the threshold from April 2024.
Is there VAT on food in the UK?
Most basic food is zero-rated, but hot takeaway food, confectionery, crisps and restaurant meals are standard-rated at 20%.