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UK VAT Calculator

Add VAT to a net amount, remove VAT from a VAT-inclusive amount, or work out the VAT amount itself, using the standard, reduced, zero or a custom VAT rate.

Calculation type

Choose whether your figure excludes VAT, already includes VAT, or you just want to see the VAT amount.

Amount

Enter a net amount for Add VAT, or a VAT-inclusive amount for Remove VAT.

VAT rate

The VAT rate that applies depends on the goods or services and the circumstances of the supply. You choose the rate; this calculator does not decide it for you.
Only used when Custom is selected as the VAT rate above. A custom rate is not a recognised current UK VAT rate.

Figures are calculated to full precision internally and rounded to 2 decimal places for display. This calculator does not determine which VAT rate applies to your goods or services; you choose the rate.

How VAT is worked out

VAT (Value Added Tax) is added to the price of most goods and services in the UK. The calculation works differently depending on whether your starting figure already includes VAT.

Adding VAT
VAT amount
Net amount x VAT rate
Gross amount
Net amount + VAT amount
Removing VAT
Net amount
VAT-inclusive amount / (1 + VAT rate)
VAT amount
Gross amount minus net amount

Current UK VAT rates

TaxEngines uses centrally maintained VAT rate data, last reviewed 9 August 2026.

  • Standard rate: 20%, applies to most goods and services
  • Reduced rate: 5%, applies to specific qualifying supplies
  • Zero rate: 0%, applies to zero-rated taxable supplies
The VAT rate that applies depends on the goods or services and the circumstances of the supply. This calculator does not give individual VAT advice; check GOV.UK guidance or seek professional advice if you are unsure.

Adding VAT

To add VAT to a net amount, multiply the net amount by the VAT rate to find the VAT, then add that to the net amount.

Example: £100.00 at 20% VAT
Net amount
£100.00
VAT
£20.00
Total including VAT
£120.00

Removing VAT

Removing VAT from a VAT-inclusive amount does not mean simply subtracting the VAT percentage. The VAT was originally calculated from the smaller net price, so the VAT-inclusive amount must be divided by 1 plus the VAT rate to recover the net amount, rather than reduced by that percentage directly.

Example: £1,200.00 including 20% VAT
VAT-inclusive amount
£1,200.00
VAT contained
£200.00
Net amount
£1,000.00

Worked VAT examples

VAT calculated at standard and reduced rates
Starting amountVAT rateVAT amountAmount excluding VATAmount including VAT
£100.00 excluding VAT20%£20.00£100.00£120.00
£500.00 excluding VAT5%£25.00£500.00£525.00
£1,200.00 including VAT20%£200.00£1,000.00£1,200.00

Zero-rated and VAT-exempt are not the same

Zero-rated supplies are taxable supplies with VAT charged at 0%. They remain within the VAT system and are reported on VAT returns.

VAT-exempt supplies are treated differently: they are not taxable supplies at all, so they are not charged VAT at the standard, reduced or zero rate. This calculator covers taxable VAT rates only (standard, reduced and zero); it does not model VAT-exempt supplies, and "Exempt" is not offered as a rate option.

Official source

Questions

Frequently asked questions

How do I add 20% VAT?
Select "Add VAT to a net amount", enter your net amount and choose the 20% Standard rate. The calculator multiplies the net amount by 0.20 to find the VAT, then adds that to the net amount to give the gross total. For example, £1,000.00 plus 20% VAT is £200.00 VAT and a gross total of £1,200.00.
How do I remove VAT from a VAT-inclusive price?
Select "Remove VAT from a VAT-inclusive amount", enter the VAT-inclusive price and choose the correct VAT rate. The calculator divides the gross amount by 1.20 (for 20% VAT) to find the net amount, then subtracts the net amount from the gross amount to find the VAT contained within it. For example, £1,200.00 including 20% VAT contains £200.00 VAT and a net amount of £1,000.00.
Why can I not just subtract 20% to remove 20% VAT?
Subtracting 20% of the gross amount overstates the VAT, because the 20% rate was originally applied to the smaller net amount, not to the gross amount. £1,200.00 minus 20% gives £960.00, not the correct net amount of £1,000.00. The correct method divides the gross amount by 1 plus the VAT rate.
What are the current UK VAT rates?
The standard rate is 20% and applies to most goods and services. The reduced rate is 5% and applies to specific qualifying supplies. The zero rate is 0% and applies to zero-rated taxable supplies. These rates are set by GOV.UK and can change; this calculator reads them from centrally managed rate data so it stays current.
What is the difference between zero-rated and VAT-exempt?
Zero-rated supplies are taxable supplies charged at 0% VAT, so they remain within the VAT system and are reported on VAT returns. VAT-exempt supplies are not taxable supplies at all and are not charged VAT at the standard, reduced or zero rate. This calculator covers taxable VAT rates only (standard, reduced and zero); it does not model VAT-exempt supplies, and "Exempt" is not offered as a rate option.
Can I use a custom VAT rate?
Yes. Select "Custom" as the VAT rate and enter a percentage in the custom rate field. A custom rate is not a recognised current UK VAT rate; use it only if you have a specific reason to calculate at a different percentage.
Does the calculator decide which VAT rate applies to my product?
No. The VAT rate that applies depends on the goods or services and the circumstances of the supply. This calculator applies whichever rate you select; it does not determine VAT liability. Check GOV.UK guidance or seek professional advice if you are unsure.
What is the current VAT registration threshold?
For the VAT registration threshold is £90,000 and the deregistration threshold is £88,000, based on current government published rates. This is background information only; it does not affect the calculations on this page.
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Official sources

Last reviewed

Reviewed
Version 1.0.0

This calculator provides estimates for general guidance only. It is not financial, tax or legal advice, and it does not determine which VAT rate applies to your goods or services. Check GOV.UK guidance or seek professional advice if you are unsure.