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Home › Free tools › VAT calculator: add or remove VAT

VAT calculator: add or remove VAT

Add VAT to a net price, or take VAT out of a price that already includes it, at the UK's 20%, 5% or 0% rates.

The UK VAT rates

The standard rate is 20% and applies to most goods and services. The reduced rate is 5% (for example children's car seats and home energy), and the zero rate is 0% (for example most food and children's clothes). Some things are exempt, such as postage stamps and financial and property transactions (GOV.UK). Zero-rated is not the same as exempt: zero-rated sales still count towards the VAT threshold.

Adding and removing VAT

To add 20% VAT, multiply the net price by 1.2: £1,000 becomes £1,200. To take VAT out of a VAT-inclusive price, divide by 1.2: £1,200 becomes £1,000, so the VAT is £200 (one-sixth of £1,200). At 5%, divide by 1.05.

Building and construction work

If you're a VAT-registered subcontractor working for a VAT-registered contractor under CIS, the domestic reverse charge may apply, so you don't add VAT to the invoice. Check with the VAT reverse charge checker, and price whole jobs with the quote and VAT calculator.

Not registered yet? Only VAT-registered businesses can charge VAT. Track your turnover with the VAT threshold checker, read should I register for VAT?, or compare the Flat Rate Scheme.

Rates from GOV.UK, checked 17 October 2026.

Questions

How do I work out VAT from a total?

Divide the total by 1.2 to get the price before VAT, then subtract that from the total. On £120, the price before VAT is £100 and the VAT is £20.

What are the UK VAT rates?

20% standard, 5% reduced and 0% zero rate. Some goods and services are exempt.

Can I charge VAT if I'm not registered?

No. Only VAT-registered businesses can charge VAT.

Is the VAT one-fifth of the total?

No. At 20%, VAT is one-fifth of the net price but one-sixth of the VAT-inclusive total.

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