UK VAT Calculator
Add or remove UK VAT at 20%, 5%, or 0% rates. Calculate VAT-inclusive and VAT-exclusive prices instantly.
Β£
Quick:
Β£100.00
Net Price (ex VAT)
Β£20.00
VAT Amount
Β£120.00
Gross Price (inc VAT)
20%
VAT Rate Applied
VAT Calculation Details
| Component | Amount |
|---|---|
| Net Price (excluding VAT) | Β£100.00 |
| VAT Rate | 20% |
| VAT Amount | Β£20.00 |
| Gross Price (including VAT) | Β£120.00 |
How to Calculate UK VAT
To add VAT to a net price, multiply by (1 + VAT rate). To remove VAT from a gross price, divide by (1 + VAT rate).
Formula
Adding VAT: Gross = Net Γ (1 + Rate) β VAT = Gross - Net
Removing VAT: Net = Gross / (1 + Rate) β VAT = Gross - Net
Removing VAT: Net = Gross / (1 + Rate) β VAT = Gross - Net
UK VAT Rates
Standard rate (20%): Most goods and services
Reduced rate (5%): Domestic energy, children's car seats, some health products
Zero rate (0%): Most food, children's clothing, books, newspapers, public transport
Reduced rate (5%): Domestic energy, children's car seats, some health products
Zero rate (0%): Most food, children's clothing, books, newspapers, public transport
Example
Invoice for Β£850 net (standard rate 20%):
VAT = Β£850 Γ 20% = Β£170
Gross = Β£850 + Β£170 = Β£1,020
Retail price Β£1,200 inc VAT β what is the VAT?
Net = Β£1,200 / 1.20 = Β£1,000
VAT = Β£1,200 - Β£1,000 = Β£200
VAT = Β£850 Γ 20% = Β£170
Gross = Β£850 + Β£170 = Β£1,020
Retail price Β£1,200 inc VAT β what is the VAT?
Net = Β£1,200 / 1.20 = Β£1,000
VAT = Β£1,200 - Β£1,000 = Β£200
Extended
VAT-Inclusive vs VAT-Exclusive Comparison
Compare how VAT affects pricing at different rates and amounts
VAT Rate Comparison Table
Compare VAT amounts across all UK rates for different amounts.
Β£
| VAT Rate | Net (ex VAT) | VAT | Gross (inc VAT) |
|---|
The above shows adding VAT to the net amount entered.
Frequently Asked Questions
What is UK VAT?
Value Added Tax (VAT) is a consumption tax charged on most goods and services in the UK. The standard rate is 20%. It is collected by businesses on behalf of HMRC.
What is the reduced VAT rate?
A reduced rate of 5% applies to certain items including domestic energy (electricity, gas), children's car seats, and some health products. A zero rate applies to most food, children's clothing, and books.
When must a business register for VAT?
Businesses must register for VAT when their taxable turnover exceeds Β£90,000 in any 12-month period (as of April 2024). Voluntary registration is also possible below this threshold.
What is the difference between VAT-inclusive and VAT-exclusive pricing?
VAT-exclusive (net) price is the price before VAT. VAT-inclusive (gross) price is the price after VAT is added. UK consumer prices must be displayed inclusive of VAT.
Can VAT be reclaimed?
VAT-registered businesses can reclaim VAT paid on business purchases (input tax) against VAT charged on sales (output tax). Consumers cannot reclaim VAT.