VAT Calculator: Add or Remove VAT
How to add or remove VAT
Adding VAT: gross = net × 1.2 at the 20% standard rate. For example, £250.00 plus VAT is £50.00 of VAT and £300.00 gross. At the 5% reduced rate, £80.00 net plus £4.00 VAT makes £84.00.
Removing VAT: net = gross ÷ 1.2, and the VAT is the difference. For example, £120.00 including VAT is £100.00 net and £20.00 VAT. At 20% the VAT in a VAT-inclusive price is one sixth of it; at 5% it is one twenty-first.
A common mistake is taking 20% off the gross price: £120 minus 20% is £96, not £100.
In Invoice lines mode, the calculator adds up the lines at each rate, works out the VAT once per rate and shows the net, VAT and gross per rate and in total, like the VAT summary on an invoice.
Which VAT rate applies?
GOV.UK lists three rates: the standard rate of 20% for most goods and services, the reduced rate of 5% for some goods and services, and the zero rate of 0%. The standard rate has been 20% since 4 January 2011, when it rose from 17.5%.
- 20% standard rate: most goods and services
- 5% reduced rate: for example, children's car seats and home energy
- 0% zero rate: for example, most food and children's clothes
- Exempt: some things have no VAT at all, such as postage stamps and financial and property transactions
Rounding to the penny
Each result is rounded to the nearest penny, with half a penny rounded up. When removing VAT, the net amount is rounded first and the VAT is the rest, so net plus VAT always equals the price you entered.
With several lines, the VAT is rounded once per rate, on the total. HMRC's VAT guide (VAT Notice 700, section 17.5) lets invoice traders round the total VAT on an invoice down to a whole penny, and sets out ways to round VAT line by line; retailers who work out VAT at line or invoice level must not round it down (section 17.6). So an invoice can differ from this calculator by a penny or so.
To use a rate that is not listed, for example another country's VAT, type it into Other rate.
VAT calculator questions
Is VAT 20% in the UK?
Yes, the standard rate is 20% and has been since 4 January 2011. There is also a reduced rate of 5% and a zero rate of 0%, and some things are exempt from VAT.
How do I work out VAT at 20%?
Multiply the net price by 0.2 to get the VAT, or by 1.2 to get the price including VAT. For example, £250.00 plus VAT is £300.00, of which £50.00 is VAT.
How do I subtract VAT from a price?
Divide the VAT-inclusive price by 1.2 (at 20%) or 1.05 (at 5%) to get the net price; the VAT is the difference. For £600.00 including 20% VAT, that is £500.00 net and £100.00 VAT.
How do I calculate VAT at a different rate, such as 12%?
Choose Other rate and type the percentage. The calculator accepts any rate from 0% to 100% with up to three decimals and works out the net, VAT and gross the same way.
Which goods have 5% or 0% VAT?
GOV.UK gives children's car seats and home energy as examples of the 5% reduced rate, and most food and children's clothes as examples of the zero rate. Check the GOV.UK list of VAT rates on different goods and services for a specific item.
Why does my invoice differ by a penny?
Because of rounding. This calculator rounds to the nearest penny, and once per rate for several lines. HMRC lets invoice traders round the total VAT down to a whole penny or round line by line (VAT Notice 700, section 17.5), so totals can differ slightly.
Are my amounts saved or sent anywhere?
No. The calculation runs in your browser. Amounts and any rate you type yourself are not put in the page address or in analytics, which only count actions such as adding or removing VAT and which listed rate was chosen.
Sources
We checked the rates and the rounding statements against the official HMRC and GOV.UK pages. This calculator is not tax advice. Checked 9 October 2026.