VAT Calculator — Add or Remove VAT in One Click
Add or remove VAT from any amount in seconds. Supports UK (20%), EU, and custom VAT rates. Free VAT calculator with formula and worked examples.
Disclaimer: This tool is for educational purposes. Results are estimates and should not be taken as professional advice.
Our VAT Calculator lets you add VAT to any net amount or extract VAT from a gross (VAT-inclusive) price — instantly. Choose your VAT rate: UK standard (20%), reduced (5%), EU rates, or enter a custom percentage. Results show the VAT amount and the gross or net price separately.
Formula
Adding VAT:
VAT Amount = Net Price × (VAT Rate / 100) Gross Price = Net Price + VAT Amount
Removing VAT:
Net Price = Gross Price / (1 + VAT Rate / 100) VAT Amount = Gross Price − Net Price
Example — Adding 20% VAT to £100:
- VAT Amount = £100 × 0.20 = £20
- Gross Price = £100 + £20 = £120
Example — Removing 20% VAT from £120:
- Net Price = £120 / 1.20 = £100
- VAT Amount = £120 − £100 = £20
UK VAT Rates
| Rate | Type | Common Examples |
|---|---|---|
| 20% | Standard | Most goods and services |
| 5% | Reduced | Home energy, children's car seats, sanitary products |
| 0% | Zero-rated | Food (most), children's clothing, books, public transport |
| Exempt | — | Insurance, education, health services |
FAQs
How do I add VAT to a price?
Multiply the net (ex-VAT) price by the VAT rate and add it to the original price. For 20% VAT: Gross = Net × 1.20. For 5% VAT: Gross = Net × 1.05.
How do I remove VAT from a price?
Divide the gross (VAT-inclusive) price by (1 + VAT Rate). For 20% VAT: Net = Gross / 1.20. For 5% VAT: Net = Gross / 1.05.
What is the current VAT rate in the UK?
The standard UK VAT rate is 20%. A reduced rate of 5% applies to certain goods like home energy and children's car seats. Some goods are zero-rated (0%) including most food, children's clothing, and books.
Is VAT the same as sales tax?
No. VAT (Value Added Tax) is collected at each stage of the supply chain, with businesses reclaiming input VAT. Sales tax (used in the US) is only applied at the final point of sale to the end consumer. The result for the consumer is similar, but the collection mechanism is different.
Do I charge VAT if I'm below the VAT threshold?
In the UK, you only need to register for and charge VAT if your taxable turnover exceeds the VAT registration threshold (£90,000 for 2024–25). Below this threshold, you do not charge VAT, though voluntary registration is possible.