How to use the VAT calculator
- Choose Add VAT if you have a net price (excluding VAT), or Remove VAT if your price already includes VAT.
- Enter the amount.
- Enter the VAT rate — 20% is the standard rate in the UK.
How to add VAT
To add 20% VAT, multiply by 1.2. £100 + 20% VAT = £100 × 1.2 = £120.
How to remove VAT (reverse VAT)
To remove 20% VAT, divide by 1.2 — don't subtract 20%. £120 ÷ 1.2 = £100, so the VAT is £20. Subtracting 20% from £120 would give £96, which is wrong because the VAT was calculated on the smaller net price. A quick way to find the VAT inside a 20% gross price is to divide by 6: £120 ÷ 6 = £20.
UK VAT rates
| Rate | Applies to |
|---|---|
| Standard — 20% | Most goods and services |
| Reduced — 5% | Some goods and services, such as home energy and children's car seats |
| Zero — 0% | Most food, books, newspapers and children's clothes |
Standard VAT rates in other countries
| Country | Standard rate |
|---|---|
| Ireland | 23% |
| Germany | 19% |
| France | 20% |
| Italy | 22% |
| Spain | 21% |
| Netherlands | 21% |
| Sweden | 25% |
| Hungary | 27% |
| Luxembourg | 17% |
Rates change from time to time and many countries have reduced rates for specific goods, so check the official tax authority for your country. In the United States there is no VAT — use the sales tax calculator instead.
Frequently asked questions
How do I add 20% VAT to a price?
Multiply the net price by 1.2. For example, £250 + 20% VAT = £250 × 1.2 = £300.
How do I remove VAT from a price?
Divide the price including VAT by 1 plus the rate. For 20% VAT, divide by 1.2: £300 ÷ 1.2 = £250, so the VAT was £50.
How do I work out the VAT in a price that includes 20% VAT?
Divide the gross price by 6. For example, £120 ÷ 6 = £20 of VAT. This works because 20% VAT is one-sixth of the gross price.
Why can't I just subtract 20% to remove VAT?
Because VAT is calculated on the net price, not the gross price. Subtracting 20% of the gross price removes too much: £120 − 20% = £96, but the correct net price is £100.
What is the VAT rate in the UK?
The standard rate is 20%. A reduced rate of 5% applies to some goods and services, such as domestic energy, and many essentials such as most food and children's clothing are zero-rated.
Results are provided for convenience and rounded for display. Sales tax rules, tipping customs and date conventions differ by location, so check local rules when it matters.
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