VAT Calculator
Enter the price before VAT is added
How VAT Works in the UK
Value Added Tax (VAT) is a consumption tax added to most goods and services sold in the UK. Businesses registered for VAT must charge it on their sales and can reclaim VAT they've paid on business purchases. The standard rate is 20%, which applies to the majority of goods and services.
There are three VAT rates in the UK. The standard rate of 20% covers most products and services. The reduced rate of 5% applies to things like domestic energy, children's car seats and some renovation work. Zero rate (0%) applies to most food, children's clothing, books and public transport — these are technically VAT-rated but at 0%, meaning VAT-registered businesses can still reclaim input VAT.
Adding VAT — Net to Gross
To add VAT to a net (ex-VAT) price, multiply the net amount by the VAT rate and add it on. For standard rate: multiply by 1.20. For reduced rate: multiply by 1.05. For example, a £100 net price at 20% VAT gives a gross price of £120.
Removing VAT — Gross to Net
To remove VAT from a gross (inc-VAT) price, divide by the appropriate VAT multiplier. For standard rate: divide by 1.20. For reduced rate: divide by 1.05. For example, a £120 gross price at 20% VAT gives a net price of £100 and a VAT amount of £20.
Do I Need to Register for VAT?
You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period. You can also register voluntarily if your turnover is below this threshold, which can be beneficial if you sell to other VAT-registered businesses or want to reclaim VAT on your purchases.
Common VAT Calculations — Standard Rate 20%
| Net Price | VAT (20%) | Gross Price |
|---|---|---|
| £10.00 | £2.00 | £12.00 |
| £50.00 | £10.00 | £60.00 |
| £100.00 | £20.00 | £120.00 |
| £250.00 | £50.00 | £300.00 |
| £500.00 | £100.00 | £600.00 |
| £1,000.00 | £200.00 | £1,200.00 |
| £5,000.00 | £1,000.00 | £6,000.00 |
| £10,000.00 | £2,000.00 | £12,000.00 |