VAT Calculator
Add VAT to a net price, or pull it back out of a VAT-inclusive price.
How is VAT calculated?
VAT (Value Added Tax) is charged as a percentage on top of the net price of most goods and services in the UK — 20% is the standard rate, with a reduced 5% rate on some items like home energy, and a 0% zero rate on most food, books and children's clothing. Adding VAT means multiplying the net price by the rate; removing VAT from a price that already includes it means dividing by (1 + rate) rather than just subtracting the percentage, which is a common mistake — this calculator handles both directions correctly.
Frequently asked questions
What is the standard UK VAT rate?
20%, unchanged since January 2011. A reduced 5% rate applies to some items like home energy, and a 0% zero rate applies to most food, books, and children's clothes.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.2 (for the standard 20% rate) to get the net price, then subtract that from the original to find the VAT amount — this calculator does both directions automatically.
Do all businesses have to charge VAT?
Only VAT-registered businesses charge it — registration is compulsory once taxable turnover passes the VAT threshold, and optional below it. Check current thresholds on gov.uk before making a registration decision.
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