Business · UK
UK VAT Calculator
Add VAT to a price or remove it, at the UK rates of 20%, 5% or 0%. See the price before VAT, the VAT amount and the total, and the quick way to work it out yourself.
Rates for 2026. An estimate to help you plan, not financial or tax advice. Confirm with HMRC or an accountant.
How to work out VAT
VAT (value added tax) is a tax added to most things you buy. To add VAT to a price, you multiply by 1 plus the rate. At the standard 20% rate that is times 1.20, so £100 before VAT becomes £120, with £20 of VAT.
To go the other way and remove VAT from a price that already includes it, you divide by the same figure. So £120 including VAT divided by 1.20 is £100 before VAT. The calculator above does both, at 20%, 5% or 0%.
The mistake to avoid
Removing VAT is not the same as subtracting 20%. Take a £600 price that includes VAT. Knocking off 20% gives £480, which is wrong, because the VAT was added to the smaller figure in the first place. Dividing £600 by 1.20 gives the right answer: £500 before VAT, with £100 of VAT. A quick check for 20%: the VAT inside a total is the total divided by 6.
UK VAT rates in 2026
- Standard rate, 20%. Most goods and services.
- Reduced rate, 5%. A small set of items such as home energy and children's car seats.
- Zero rate, 0%. Things like most food, books and newspapers, and children's clothes. Zero-rated is not the same as VAT-exempt: zero-rated is still taxable, just at 0%.
A business must register for VAT once its taxable turnover passes £90,000 in any rolling 12-month period.
Common questions
How do I add VAT to a price?
Multiply the price by 1 plus the rate. At 20% that means times 1.20, so £100 plus VAT is £120 (£20 of VAT). At 5% you multiply by 1.05.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1 plus the rate, not by subtracting the percentage. At 20% you divide by 1.20, so £120 including VAT is £100 before VAT, with £20 of VAT.
Can I remove VAT by subtracting 20%?
No. The 20% was added to the smaller net figure, not the larger gross one. Take £600 including VAT: subtracting 20% gives £480, which is wrong. Dividing by 1.20 gives the correct £500, with £100 of VAT.
How much is VAT on £100?
At the standard 20% rate, VAT on £100 is £20, making £120 in total. At 5% it would be £5.
How do I work out the VAT on a receipt?
If the total already includes 20% VAT, the VAT part is the total divided by 6. So on a £30 receipt, the VAT is £5 and the price before VAT is £25.
What is the current UK VAT rate?
The standard rate is 20% and covers most goods and services. There is a reduced rate of 5% (for things like home energy and children's car seats) and a zero rate of 0% (for things like most food, books and children's clothes).
Is VAT worked out on the net or the gross amount?
VAT is charged on the net price, the amount before VAT. The gross price is the net price plus that VAT. When you only know the gross, you work backwards by dividing it down.
About this calculator
Written by the calcd team. We checked the rates and method against gov.uk (HMRC). The result is an estimate to help you plan, not financial or tax advice. For anything that affects a VAT return, confirm it with HMRC or an accountant. Last updated June 2026.