UK VAT Calculator

Divide the gross amount by 1 + the rate. For the 20% standard rate: Net = Gross ÷ 1.2 and VAT = Gross − Net, which is Gross × 1/6. The calculator above does both directions instantly.

UK businesses must register for VAT when taxable turnover exceeds the threshold set by HMRC (currently £90,000 per year). Check gov.uk for the exact current figure, as thresholds change.

Most goods and services use the 20% standard rate. Use 5% for reduced-rate items such as domestic fuel and power, and 0% for zero-rated items like most food, books and children's clothing. For anything ambiguous, confirm on gov.uk.

Destination and registration rules apply — sales to non-UK consumers or businesses can be zero-rated, reverse-charged or VAT-liable depending on the country and your registration status. Verify on gov.uk for cross-border sales.

Multiply by 1.2 (or add 20%): a £100 net price becomes £120.00 gross, with VAT = £20.00. On a calculator: price × 20 ÷ 100, then add. The calculator shows all three figures — net, VAT and gross — as you type.

If £100 is VAT-inclusive at the 20% standard rate, VAT = £100 × 1/6 = £16.67 and the net price is £83.33. If £100 is a net price, VAT on top is £20.00 and gross is £120.00. Switch the Add/Remove toggle to match which of the two you have.

At the 20% standard rate, the VAT inside any gross amount is exactly one-sixth of it: VAT = Gross ÷ 6. A £119.99 supermarket receipt contains £20.00 of VAT (≈£20.00) and £99.99 net. The equivalent general formula is VAT = Gross × 20 ÷ 120.

Net = Gross × 100 ÷ 105 and VAT = Gross × 5 ÷ 105. Example: from a £105 gross energy bill, net is £100.00 and VAT is £5.00. The same pattern works for any rate — just change the divisor to (100 + rate).

Consumer-facing prices on the high street and e-commerce must include VAT by law — the tag price is what you pay. Business quotes and invoices often show VAT excluded and added separately, which is why both directions of this calculator matter.

The standard rate rose from 17.5% to 20% on 4 January 2011 and has stayed there since. The reduced rate is 5% and zero-rated items are 0%; receipts older than 2011 may show 17.5% — use the custom-rate field for those.

Adding 20% VAT: VAT = £200, gross = £1,200. Removing 20% VAT from an inclusive £1,000: net = £833.33 and VAT = £166.67 (one-sixth of 1,000). Both directions appear instantly with the toggle.

A simplified HMRC scheme where eligible small businesses pay a fixed percentage of turnover instead of tracking VAT per invoice — the percentage varies by trade (roughly 4%–14.5%). The claim is on your turnover, so per-invoice VAT calculations stop mattering while on the scheme.

To reclaim VAT you need a VAT invoice showing the supplier’s name, address and VAT number, the invoice number and date, a description of the goods or services, the net amount, the VAT rate and amount in sterling — or a simplified invoice for retail supplies under £250. Check totals match before reclaiming.