VAT calculator

Add VAT to a net price, or strip it back out of a gross one. 20%, 5% or any rate you like.

Amount before VAT (net)

VAT rate

Net (before VAT) –

VAT at 20% –

Gross (including VAT) –

UK VAT rates in 2026

VAT (value added tax) is charged on most goods and services sold in the UK. There are three rates:

20% standard rate: most goods and services. Unchanged since 4 January 2011.
5% reduced rate: home energy, children's car seats and a handful of other categories.
0% zero rate: most food, books, newspapers and children's clothes. Zero-rated is not the same as exempt, which covers things like postage stamps and financial services.

How to add VAT

Multiply the net price by 1 plus the rate as a decimal. At the 20% standard rate:

gross = net × 1.20 · VAT = net × 0.20

Add 20% VAT to a £250.00 invoice

£250.00 × 1.20 = £300.00 gross (VAT is £50.00)

How to remove VAT (the bit everyone gets wrong)

To get back to the net price, divide by 1.20. The common mistake is multiplying by 0.80, which takes 20% off the gross figure rather than removing the VAT that was added to the net figure:

net = gross ÷ 1.20 · at 5%: net = gross ÷ 1.05

Remove VAT from a £120.00 receipt

Right: £120.00 ÷ 1.20 = £100.00 net. Wrong: £120.00 × 0.80 = £96.00

Remove 5% VAT from a £315.00 energy bill

£315.00 ÷ 1.05 = £300.00 net (VAT was £15.00)

When you need each direction

Adding VAT: quoting or invoicing as a VAT-registered business, pricing products, checking a supplier's maths.
Removing VAT: reclaiming VAT on expenses, comparing net costs between suppliers, filling in a VAT return, or working out how much of a purchase was tax.

Figures from this tool are for guidance only and are not tax advice. For registration, returns and edge cases, see gov.uk/vat-rates or speak to an accountant.

Frequently asked questions

How do I take 20% VAT off a price?

Divide the VAT-inclusive price by 1.20. A gross price of £120 divided by 1.20 gives a net price of £100, so the VAT was £20. Do not multiply by 0.80, which takes 20% off the gross figure and gives the wrong answer (£96 instead of £100).

What are the current UK VAT rates?

The standard rate is 20% and applies to most goods and services. The reduced rate is 5% and covers things like home energy and children's car seats. The zero rate (0%) covers most food, books, newspapers and children's clothes. Some items, such as postage stamps and financial services, are exempt from VAT altogether.

What is the VAT registration threshold?

A business must register for VAT once its taxable turnover passes £90,000 in any rolling 12-month period. Businesses below the threshold can register voluntarily, which lets them reclaim VAT on purchases.

Is VAT the same across England, Scotland, Wales and Northern Ireland?

Yes. VAT is a UK-wide tax set by the UK government, so the same rates apply in all four nations. Northern Ireland has some special rules for goods traded with the EU, but the rates themselves are the same.

Do I pay VAT on food?

Most everyday food and drink from a supermarket is zero-rated, so no VAT is charged. However, standard-rate VAT at 20% applies to hot takeaway food, restaurant meals, alcohol, confectionery, crisps, soft drinks and bottled water.