VAT formulas
- Gross = net × (1 + rate): £250 net at 20% is £300 gross.
- Net = gross ÷ (1 + rate): £300 gross at 20% is £250 net.
- VAT in a gross price at 20% = gross ÷ 6.
Rates are set by HMRC; see VAT rates on different goods and services.
VAT calculator
- Methodology & sources
- Runs in your browser
Add VAT to a net amount or work out the VAT included in a gross price, at the current UK rates.
Gross amount
£120.00
- Net amount
- £100.00
- VAT
- £20.00
- Gross amount
- £120.00
- VAT rate
- 20% (standard)
UK VAT rates: 20% standard, 5% reduced (e.g. home energy), 0% zero rate (e.g. most food, children’s clothes).
Gross amount
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by 1.2 for the 20% standard rate, or by 1.05 for the 5% reduced rate. £100 plus VAT is £120.
How do I remove VAT from a price?
Divide the gross price by 1.2 (standard rate): £120 including VAT is £100 before VAT, and the VAT is £20, one sixth of the gross price. Taking 20% off the gross price gives the wrong answer (£96).
What are the UK VAT rates?
The standard rate is 20%. A reduced 5% rate applies to some goods and services such as home energy and children’s car seats, and a 0% zero rate to most food, books and children’s clothes. Some items are exempt from VAT altogether.