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United Kingdom VAT Calculator

Remove VAT from a gross UK price or add it to a net figure. Loads the 20% standard rate and works in both directions, with reduced and zero rates supported.

Runs in your browser — files never leave your device

Net
£100
VAT
£20
Gross
£120

How it works

VAT is a value-added tax, and UK prices shown to consumers already include it. That makes the reverse direction the one most people need on this page: pulling the VAT out of a figure that already contains it. Tick “amount already includes VAT” and the tool divides instead of multiplying. Leave the box clear and it works forwards, adding VAT to a net amount — what you want when you are pricing a job or reading a trade quote given ex-VAT.

Extracting at the standard rate: net = gross ÷ 1.20, then VAT = gross − net. Adding: VAT = net × 0.20, then gross = net + VAT. Change the 1.20 and the 0.20 to match whichever rate applies. All three outputs are rounded to the penny.

Worked example. A £59.99 price tag with VAT already inside, at 20%: net = 59.99 ÷ 1.2 = £49.99, and the VAT sitting within the price is £10.00. Run it the other way — £49.99 plus 20% — and you land back on £59.99, which is the check that the two directions agree. On a £1,200.00 VAT-inclusive invoice the split is £1,000.00 net and £200.00 VAT.

The standard rate is 20%, but reduced and zero rates apply to whole categories of goods, and picking the wrong one is the commonest error here. Most food, children’s clothing and books are zero-rated, which means there is no VAT inside the price to extract at all — putting a £59.99 children’s coat through a 20% extraction invents £10 of tax that was never charged. Reduced-rate supplies exist as well, so establish which rate a supply falls under before you divide, and set the rate box to 0 for anything zero-rated.

For VAT-registered businesses this split is bookkeeping rather than curiosity. VAT you pay on purchases is input VAT you can generally reclaim; VAT you charge customers is output VAT you owe. You therefore need net and VAT separated rather than a single gross total, which is exactly why a proper VAT invoice shows net, VAT and gross as three distinct figures — the same three boxes this page returns. Where a supplier gives you nothing but a gross amount, inclusive mode is how you recover the other two.

Treat the output as an estimate — confirm the applicable rate and your reclaim position with HMRC or your accountant before you submit a return.

Other regions: United States, Canada, Australia.

Frequently asked questions

How do I remove VAT from a price?
Divide the gross figure by 1.2 at the standard 20% rate; the VAT is whatever is left over. Ticking the inclusive box does this for you, so £59.99 becomes £49.99 net plus £10.00 of VAT. For a reduced or zero rate, change the rate box first and the divisor changes with it.
Why is taking 20% off the gross price the wrong answer?
Because the VAT was charged on the net price, not on the gross one. Subtracting 20% from £59.99 leaves £47.99, but the true net figure is £49.99 — the deduction is roughly 16.67% of the gross, not 20%. Dividing by 1.2 is the only reliable way to reverse it.
Which VAT rate should I use?
The standard rate is 20% and covers most goods and services, but reduced and zero rates apply to specific categories. Most food, children’s clothing and books are zero-rated, so their prices carry no VAT at all. Check which rate the supply falls under before calculating, because the rate you pick changes the answer far more than the amount does.
What is the difference between input VAT and output VAT?
Output VAT is the VAT you charge your customers and owe to HMRC; input VAT is the VAT you were charged on business purchases, which a VAT-registered business can generally reclaim. Your return is broadly the difference between the two, which is why every purchase needs its net and VAT amounts recorded separately rather than as one gross total.
Should I charge VAT if my business is not VAT-registered?
No — only VAT-registered businesses charge VAT, and only they can reclaim input VAT. Registration can be compulsory once turnover passes the threshold HMRC sets, and it can also be taken on voluntarily below it. Check the current threshold and rules with HMRC, since this calculator only handles the arithmetic once you know you are in scope.
Will this match the VAT on a multi-line invoice?
Usually, but not always to the penny. This page rounds net, VAT and gross once, from a single amount, whereas accounting systems may round the VAT on each line before totalling. On invoices with many lines that can produce a penny or two of difference; on a single figure the two agree exactly.
Does anything I enter leave my device?
No. Everything is calculated in your browser, so no prices or invoice figures are sent anywhere.

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