How do I add VAT to a price?

To add 20% VAT to a net price, multiply the net amount by 1.2. For example, £100 net becomes £120 gross (including VAT). Our calculator does this instantly for all three UK VAT rates.

How do I remove VAT from a price?

To remove 20% VAT from a gross price, divide the gross amount by 1.2. For example, £120 gross divided by 1.2 gives £100 net. The VAT amount is £20. Use our calculator's 'Remove VAT' mode to do this instantly.

What is the UK VAT registration threshold?

For 2025/26, businesses must register for VAT when their taxable turnover exceeds £90,000 in any rolling 12-month period. Once registered, you must charge VAT to customers and submit VAT returns to HMRC.

What goods and services are zero-rated for VAT?

Zero-rated items include most food (not restaurant meals), children's clothing and shoes, books and newspapers, prescription medicines, and public transport. Zero-rated is different from exempt - zero-rated businesses can still reclaim VAT on their purchases.

What is the reduced rate of VAT?

The 5% reduced rate applies to domestic fuel and power (gas, electricity), children's car seats, energy-saving materials installed in homes, and nicotine replacement products. From April 2023, women's sanitary products were also reduced to 0%.

CalcHive

VAT Calculator UK

Add or remove UK VAT at the standard 20%, reduced 5%, or zero rate. Instant net-to-gross and gross-to-net calculations.

Calculation Type

Net Amount (excl. VAT) £

VAT Rate

Net Amount (excl. VAT)£100.00

VAT (20%)£20.00

Gross Amount (incl. VAT)£120.00

UK VAT Quick Reference

Standard rate (20%)

Most goods, professional services, electronics, clothing (adult)

Reduced rate (5%)

Domestic energy, children's car seats, sanitary products, stop smoking aids

Zero rate (0%)

Food (most), children's clothing, books, public transport, prescription medicines

VAT threshold 2025/26

£90,000 annual taxable turnover - must register above this

How to Use VAT Calculator UK

Choose whether to add VAT (net to gross) or remove VAT (gross to net).
Enter your amount in pounds.
Select the VAT rate: standard (20%), reduced (5%), or zero (0%).
Your net amount, VAT amount, and gross amount appear instantly.

UK VAT Rates Explained

Value Added Tax (VAT) is a consumption tax charged at each stage of production and distribution. UK businesses registered for VAT collect it on behalf of HMRC and can reclaim VAT paid on their business purchases (input tax). There are three main rates in the UK:

Standard rate (20%): Most goods and services including electronics, clothing (adult), professional services, and restaurant meals.
Reduced rate (5%): Domestic energy, children's car seats, and certain health products.
Zero rate (0%): Food, children's clothing, books, public transport, and prescription medicines.

VAT Formulas

Adding VAT: Gross = Net x (1 + VAT rate). Example: £500 x 1.20 = £600

Removing VAT: Net = Gross / (1 + VAT rate). Example: £600 / 1.20 = £500

VAT amount only: VAT = Net x VAT rate. Example: £500 x 0.20 = £100

For business income calculations, also see our UK Take-Home Pay Calculator and Dividend vs Salary Calculator.

Frequently Asked Questions

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