SBL Toolbox · Free calculator
UK VAT calculator: add or remove VAT.
Enter an amount, choose whether to add or remove VAT, and pick a rate. You will see the net amount, the VAT and the gross total, with the working shown.
Total including VAT
£120.00
- Net amount (excluding VAT)
- £100.00
- VAT at 20%
- £20.00
- Gross amount (including VAT)
- £120.00
How it's worked out: £100.00 × 1.20 = £120.00
01 · How VAT is worked out
The VAT formulas
To add VAT, multiply the net amount by 1 plus the rate. At 20%, £100 × 1.2 = £120, so the VAT is £20.
To remove VAT, divide the gross amount by 1 plus the rate. At 20%, £120 ÷ 1.2 = £100, so the VAT is £20. A quick check: at 20%, the VAT is always one sixth of the gross amount.
A common mistake is to take 20% off the gross amount. That gives £96 from £120, which is wrong. Always divide instead.
02 · UK VAT rates
Which rate applies?
20%
Most goods and services.
5%
Some goods and services, such as domestic energy and children’s car seats.
0%
Some goods, such as most food and children’s clothes. Still VAT-taxable, but at 0%.
Some things are exempt from VAT altogether, such as most insurance and some education and health services. Check the rate for a specific item on GOV.UK: VAT rates on different goods and services.
03 · Questions
Frequently asked questions
How do I work out VAT at 20%?
To add it, multiply the price by 1.2. To find the VAT in a price that already includes it, divide the price by 6. For example, a £60 price including VAT contains £10 of VAT.
How do I remove VAT from a price?
Divide the price including VAT by 1.2 for the 20% rate, or by 1.05 for the 5% rate. The answer is the price excluding VAT.
What is the difference between net and gross?
Net is the amount before VAT is added. Gross is the total including VAT. Invoices from VAT-registered businesses show both, plus the VAT itself.
When do I need to register for VAT?
You must register if your VAT-taxable turnover goes over £90,000 in a rolling 12-month period, or you expect it to in the next 30 days. You can choose to register voluntarily below that.
Is VAT a tax?
Yes. VAT, or Value Added Tax, is a tax on most goods and services sold by VAT-registered businesses. This VAT tax calculator uses the current UK rates, and you can enter any other rate for older invoices or other countries.
Why does the custom rate default to 17.5%?
It was the UK standard rate for many years, so it is still useful for checking older invoices. Enter any rate you need.
04 · More free tools
Other tools you might need
Free Invoice Generator
Make a UK invoice with VAT and bank details, then download it as a PDF. No sign-up.
Automation Savings Calculator
See what a repetitive manual task costs each year, and how much automating it could save.
Make the invoice too.
Our free invoice generator works out VAT for each item and gives you a professional PDF invoice in seconds. No sign-up.