What it does
This calculator adds VAT to a net price, or works out the pre-VAT price by removing VAT from a gross total. Pick the mode (Add or Remove), pick the rate (20% standard or 5% reduced), enter a price and you will see the net, the VAT and the gross straight away.
How it works
VAT (Value Added Tax) is a consumption tax charged on most goods and services in the UK. The rate is set by gov.uk: 20% is the standard rate that applies to most items, 5% is the reduced rate for things like domestic fuel and power, mobility aids for older people, and children's car seats, and some categories (most food, books, children's clothes) are zero-rated. Rates can change; check gov.uk for the current figures.
Adding VAT to a net price is one multiplication; removing VAT from a gross price is one division. Written out:
Here rate is the VAT rate as a decimal — 0.2 for 20% and 0.05 for 5%. Dividing a gross by 1.2 gives the net for a 20%-rated item; dividing by 1.05 does the same for the 5% rate.
Worked example — adding VAT
Take a net price of £100.00 at the standard 20% rate. The VAT is £100.00 × 0.2 = £20.00, and the gross is £100.00 × 1.2 = £120.00.
Worked example — removing VAT
Now the reverse: a gross of £120.00 that already includes 20% VAT. The net is £120.00 ÷ 1.2 = £100.00, so the VAT portion is £120.00 − £100.00 = £20.00.
Common uses
- Invoicing: quoting a client a net price plus VAT, or reconciling a gross figure back to its net for the ledger.
- Receipts: pulling the VAT out of a till total when the receipt only shows the gross.
- Freelance quoting: deciding whether a stated price is VAT-inclusive or exclusive before agreeing a fee.
- Inclusive vs exclusive pricing: checking a shelf-edge or website price shown ex-VAT against what the customer actually pays.
Frequently asked
What's the current UK VAT rate?
The standard rate is 20% and covers most goods and services. The reduced rate is 5%, used for things like domestic fuel and power and children's car seats. Some categories are zero-rated (0%) — most food, books and children's clothes among them — and a few are exempt entirely. The current list is on gov.uk/vat-rates.
How do I take VAT out of a total?
For 20% VAT, divide the gross by 1.2 to get the net; the difference is the VAT. For 5% VAT, divide by 1.05. Multiplying the gross by 20% gives the wrong answer, because 20% of a VAT-inclusive figure is more than the VAT it contains.
Does this include Northern Ireland?
Yes. UK VAT rates apply across England, Scotland, Wales and Northern Ireland at the same figures.
Is this HMRC-official?
No. This is an arithmetic helper, not a tax return or a substitute for guidance. For anything about registering for VAT, filing returns or how a specific item is rated, use gov.uk or your accountant. You can read how we build and check these tools on our how we build and verify tools page.