How to calculate VAT
To add VAT, multiply the net price by the VAT rate and add the result to the net. At 20%, a £100 net price has £20 VAT and a £120 gross total.
To remove VAT from a gross price, divide the total by one plus the VAT rate. At 20%, £120 including VAT is £100 net and £20 VAT. Don’t simply take 20% off the gross price.
UK VAT rates
The calculator includes common VAT rates of 20%, 5% and 0%. The correct rate depends on the specific goods or services. Zero-rated supplies are still taxable supplies; exempt supplies are different and should not be treated as zero-rated.
When might I need to register?
Businesses generally must register when their taxable turnover for the last 12 months goes over £90,000, or when they expect to exceed it in the next 30 days. There are detailed rules and exceptions, so use the official guidance to check your circumstances.
GOV.UK: VAT thresholds ↗Frequently asked questions
How do I remove 20% VAT from a gross amount?
Divide the gross amount by 1.20 to find the net. The VAT is the difference between gross and net. For £120, the net is £100 and VAT is £20.
Is 0% VAT the same as VAT exempt?
No. Zero-rated sales are taxable at 0%; exempt sales are outside the VAT charge. The distinction can affect VAT recovery and turnover calculations.
Is this a VAT return calculator?
No. It performs a simple VAT arithmetic calculation and does not account for input VAT, schemes, partial exemption or return adjustments.