UK VAT Calculator

Q: How do I calculate VAT from a gross amount?

To calculate VAT from a gross amount in the UK at 20%, divide the gross figure by 1.2 to get the net amount, then subtract the net from the gross to find the VAT portion.

Q: What is the current UK VAT rate?

The standard UK VAT rate is 20%. Reduced rates of 5% and 0% apply to specific goods and services.

Q: How do I add 20% VAT to a price?

Multiply the net price by 1.2 to add 20% VAT. The result is the gross amount including VAT.

Q: How do I remove VAT from a price?

Divide the gross price by 1.2 to remove 20% VAT and get the original net amount.

The UK VAT Calculator allows you to quickly add or remove VAT from any amount. Whether you're preparing invoices, checking supplier bills, pricing products, or completing your VAT return, this tool calculates net, VAT, and gross figures instantly. Standard rate (20%) is applied by default.

Enter Amount (£)
VAT Rate (%)
Calculation Type

Invoice Summary

Net Amount: £0.00

VAT Amount: £0.00

Gross Amount: £0.00

How to Use the UK VAT Calculator

This VAT calculator works for both adding VAT to a net price and removing VAT from a gross amount. It is suitable for small businesses, sole traders, contractors, and anyone who needs fast VAT calculations without manual formulas.

To Add VAT

Enter the net amount.
Leave VAT rate at 20% (or adjust if required).
Select "Add VAT".
Click calculate to see gross and VAT amounts.

To Remove VAT

Enter the gross (VAT-inclusive) amount.
Select "Remove VAT".
Click calculate to extract the VAT portion and net value.

Understanding UK VAT Rates

The standard UK VAT rate is 20%. Some goods and services qualify for reduced rates:

20% Standard Rate - Most goods and services
5% Reduced Rate - Domestic energy and certain goods
0% Zero Rate - Most food and children’s clothing

VAT Formula Explained

Adding VAT Formula

Gross = Net × (1 + VAT rate)

Example: £100 × 1.20 = £120

Removing VAT Formula

Net = Gross ÷ (1 + VAT rate)

Example: £120 ÷ 1.20 = £100

This calculator automates both formulas so you avoid rounding errors when preparing invoices or financial records.

When to Use a VAT Calculator

Common use cases include:

Creating VAT-inclusive or VAT-exclusive invoices
Checking supplier bills
Pricing products correctly
Preparing quarterly VAT returns
Estimating margins alongside our Profit Margin & Markup Calculator

Frequently Asked Questions

How do I calculate VAT from a gross amount?

Divide the gross amount by 1.2 (for 20% VAT). The difference between gross and net is the VAT portion.

What is the current UK VAT rate?

The standard rate is 20%. Some goods qualify for 5% or 0% rates.

How do I add 20% VAT to a price?

Multiply the net price by 1.2 to get the VAT-inclusive total.

How do I remove VAT from a price?

Divide the gross figure by 1.2 to calculate the VAT-exclusive amount.