Add or remove VAT
To add VAT, enter the price before VAT and choose the rate: at 20%, a £100 net price becomes £120 with £20 VAT. To remove VAT, enter the VAT-inclusive price: at 20%, VAT is one-sixth of the total, so £120 contains £20 VAT and a £100 net price. Results update as you type and are rounded to the nearest penny.
Choose Custom rate for anything other than the three UK rates, for example when checking an invoice from another country.
Which rate applies
Most goods and services are standard-rated at 20%. The 5% reduced rate covers items such as domestic electricity and gas, children's car seats and smoking-cessation products. Zero-rated items, such as most food, children's clothes and footwear, and books and newspapers, carry 0% VAT. Exempt and out-of-scope items are different from zero-rated ones; HMRC's guidance explains each.
Businesses must register for VAT when taxable turnover over the last 12 months goes over £90,000. This calculator does arithmetic only and is not tax advice; check HMRC guidance or an accountant for your circumstances.
Frequently asked questions
How do I work out VAT from a price that includes VAT?
Choose Remove VAT. At 20%, the VAT inside a VAT-inclusive price is one-sixth of it; the calculator divides by 1.2 for the net amount and rounds to the nearest penny.
Which VAT rate should I use?
Most goods and services are standard-rated at 20%. Some, such as home energy and children's car seats, are 5%. Zero-rated items, such as most food and children's clothes, are 0%. HMRC's guidance lists the rate for each type of goods or service.
When does a business have to register for VAT?
GOV.UK says you must register when your VAT-taxable turnover over the last 12 months goes over £90,000. Check HMRC guidance for your own situation.