How do I add 20% VAT to a price?

Multiply the net price by 1.2. For example, £80 x 1.2 = £96, so the VAT is £16. For the 5% reduced rate, multiply by 1.05 instead.

How do I remove VAT from a price that already includes it?

Divide the gross price by 1.2 to get the net price, then subtract that from the gross to get the VAT. £120 ÷ 1.2 = £100, so the VAT is £20. At the 5% rate, divide by 1.05.

Why can I not just take 20% off a VAT-inclusive price?

Because the 20% was added to the net price, not the gross. Taking 20% off £120 gives £96, which is wrong. The correct net price is £100. At the standard rate, the VAT inside a gross price is always one sixth of that price.

What is the 5% reduced rate used for?

It applies to a limited list of goods and services, such as domestic fuel and power and children's car seats. The rules can be specific, so check the GOV.UK guidance on VAT rates or ask your accountant if you are not sure which rate applies.

Does the calculator handle zero-rated or exempt items?

It offers the 20% and 5% rates only. Zero-rated items carry no VAT to add, so the net and gross prices are the same. Exempt items are treated differently from zero-rated ones for VAT purposes, which is worth discussing with an accountant.

Is anything I type saved or sent anywhere?

No. The calculation runs in your browser. The amounts you enter are not sent to VisibleWeb or stored anywhere, and they disappear when you leave the page.

Tools›VAT Calculator

Free Tool

UK VAT Calculator

Add or remove VAT from any price. Standard 20% and reduced 5% rates. Free, instant, no login needed.

Price before VAT (£)

VAT Rate

Net (ex. VAT)

£0.00

VAT (20%)

£0.00

Gross (inc. VAT)

£0.00

Enter a price above to see the breakdown

How UK VAT works

20%

Standard rate

Most goods and services, web design, advertising, software

Reduced rate

Domestic energy, child car seats, some home renovations

Zero rate

Most food, books, children's clothes, public transport

Quick formulas

Add 20% VAT: multiply the net price by 1.20

Remove 20% VAT: divide the gross price by 1.20

Add 5% VAT: multiply the net price by 1.05

Remove 5% VAT: divide the gross price by 1.05

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How to use the VAT calculator

1Choose "+ Add VAT" if your figure is the price before VAT, or "Remove VAT" if the figure already includes VAT (for example the total on a supplier receipt).
2Type the amount in pounds. You can enter pence too, such as 149.99.
3Pick the rate: standard rate (20%) or reduced rate (5%).
4Read the three results: Net (ex. VAT), the VAT amount and Gross (inc. VAT). Press Copy next to any figure to paste it straight into a quote, invoice or spreadsheet.

A worked example: adding and removing 20% VAT

Say you are a decorator quoting £250 for a job and you are VAT registered. To add VAT, multiply by 1.2: £250 x 1.2 = £300. The customer pays £300, of which £50 is VAT that you pass on to HMRC.

Now go the other way. You buy materials and the receipt says £300 including VAT. To find the price before VAT, divide by 1.2: £300 ÷ 1.2 = £250. The VAT on that receipt is £300 minus £250, which is £50.

The mistake to avoid

Taking 20% off a VAT-inclusive total does not give you the net price. 20% of £300 is £60, which overstates the VAT by £10. A quick check: at the standard rate, the VAT inside a gross price is one sixth of it (£300 ÷ 6 = £50). At the 5% rate, it is one twenty-first.

Standard 20% or reduced 5%: which rate should you use?

The standard rate of 20% covers most goods and services sold in the UK, including trade labour, professional services, web design and software. If you are a plumber, electrician, consultant or freelancer, 20% is almost always the rate on your invoices.

The reduced rate of 5% only applies to specific items, such as domestic fuel and power and children's car seats. The detail matters, so if a job sits close to one of these categories, check the GOV.UK list of VAT rates on goods and services or ask your accountant before you quote.

Quoting prices to customers

If you are VAT registered, always make it clear whether a quote is "plus VAT" or "including VAT". A £1,000 quote that turns into £1,200 on the invoice is one of the quickest ways to lose trust. Homeowners and other members of the public usually expect to see the price they will actually pay, while business customers who can reclaim VAT tend to think in net figures. Use the Copy buttons above to drop the exact figure into your quote.

VAT calculator FAQs

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