UK VAT calculator
Add VAT to a net amount or extract VAT from a gross amount. Standard rate 20%, reduced rate 5%, zero-rated 0%, for 2026/27.
How does UK VAT work?
VAT is the consumption tax on most goods and services sold in the UK. The standard rate is 20% (most things), the reduced rate is 5% (domestic energy, child car seats, some renovations), and the zero rate is 0% (most food, children’s clothing, books, most bus and train fares). To add VAT to a net price, multiply by 1.20. To extract VAT from a gross price, divide by 1.20. The VAT registration threshold (April 2024 onwards) is £90,000 of taxable turnover in any rolling 12 months. Once you cross it you must register within 30 days of the end of the month you went over. If you need return filing, scheme review, or threshold monitoring, see our VAT accountant support. The calculator below handles both directions.
Fast, free, and easy to use.
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Getting the number is easy. Applying the right VAT treatment is where businesses often get caught out. RR Accountants can help with VAT registration, VAT returns, bookkeeping, and ongoing compliance.
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How is VAT calculated?
VAT is a percentage of the price before VAT. At the standard rate of 20% you add a fifth of the net price. If you start from a price that already includes VAT, you take one-sixth of it, not 20%.
| What you want | Calculation | At 20% | At 5% |
|---|---|---|---|
| VAT from a net price | Net x rate | Net x 0.20 | Net x 0.05 |
| Gross price from a net price | Net x (1 + rate) | Net x 1.20 | Net x 1.05 |
| Net price from a gross price | Gross / (1 + rate) | Gross / 1.20 | Gross / 1.05 |
| VAT from a gross price | Gross x rate / (100 + rate) | Gross / 6 | Gross / 21 |
At the zero rate (0%) the VAT is £0 and the gross price equals the net price.
Add VAT at 20%
£250 net. VAT is £250 x 0.20 = £50. The VAT-inclusive price is £300.
Remove VAT at 20%
£300 gross. VAT is £300 / 6 = £50, so the net price is £250. Taking 20% of £300 would give £60, which is wrong because the £300 already includes VAT.
Add VAT at 5%
£100 net. VAT is £100 x 0.05 = £5. The VAT-inclusive price is £105.
Remove VAT at 5%
£105 gross. VAT is £105 / 21 = £5, so the net price is £100.
How much VAT does a business pay HMRC?
A VAT-registered business pays HMRC the VAT it charged customers (output VAT) minus the VAT it paid on business purchases (input VAT), usually on a return every 3 months. Example: sales of £10,000 net carry £2,000 VAT; purchases of £3,250 net carry £650 VAT; the business pays £1,350. If the VAT paid is more than the VAT charged, HMRC usually repays the difference.
Not sure which rate applies? Read zero-rated vs VAT exempt or what is VAT. Need to know if you must register? See the VAT registration threshold.
Sources: GOV.UK VAT rates; How VAT works; VAT guide (VAT Notice 700).
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How to use the VAT calculator
Enter your amount
Choose the VAT rate
Add or remove VAT instantly
This calculator is ideal for quick estimates, invoices, quotes, pricing checks, and understanding VAT-inclusive or VAT-exclusive totals.
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Frequently asked questions
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Book a callThis VAT calculator is for general guidance only and does not constitute tax advice.