About the VAT Calculator
This VAT calculator adds or removes value added tax at any rate. Choose “add VAT” to turn a net (ex-VAT) price into a gross price, or “remove VAT” to split a VAT-inclusive price back into its net amount and the VAT it contains. The default rate is the UK standard rate of 20% (unchanged for 2026/27, alongside the 5% reduced and 0% zero rates), but you can enter any rate — 5% reduced rate, 0%, or the rate in another country.
It is built for small businesses writing invoices and quotes, sole traders checking VAT returns, freelancers deciding whether to register, and shoppers working out how much VAT is in a receipt. The comparison table shows the same net amount at common UK and EU standard rates (Germany 19%, France 20%, Spain and the Netherlands 21%, Ireland 23%, Sweden and Denmark 25%), and you can switch the currency symbol to euros or dollars.
The most common mistake is removing VAT by taking 20% off the gross price. Because VAT is charged on the net price, the VAT inside a 20%-inclusive price is one-sixth of the total (16.67%), not one-fifth — the calculator handles this automatically.
With the default inputs, the vat amount is £20.00. Change any value above to recalculate instantly.
How to use the vat calculator
- 1Choose whether to add VAT to a net price or remove it from a gross price.
- 2Enter the amount.
- 3Enter the VAT rate — 20% standard, 5% reduced, or another country’s rate.
- 4Read the net, VAT and gross figures, and compare rates in the table.
Formula and method
VAT is always charged as a percentage of the net (ex-VAT) price. To add VAT, multiply the net price by the rate as a decimal and add it on; at 20% that is the same as multiplying by 1.2.
To remove VAT from a gross price, divide by (1 + rate) — at 20%, divide by 1.2 — to get the net price, and the difference is the VAT. This means the VAT inside a gross price is rate ÷ (1 + rate) of the total: one-sixth at 20% and one-twenty-first at 5%. HMRC allows VAT on invoices to be rounded to the nearest penny.
- r
- VAT rate as a decimal (20% = 0.20)
- Net
- Price excluding VAT
- Gross
- Price including VAT
Worked examples
Add 20% VAT to £100
VAT is £100 × 0.20 = £20, so the VAT-inclusive price is £120.
Remove 20% VAT from £240
Dividing £240 by 1.2 gives a net price of £200, so the VAT is £40 — one-sixth (16.67%) of the gross, not 20% of it (£48).
Remove 5% VAT from a £52.50 energy bill
Domestic energy is charged at the 5% reduced rate. £52.50 ÷ 1.05 = £50 net, so the bill includes £2.50 of VAT.
Add German 19% VAT to a €1,500 invoice
€1,500 × 0.19 = €285 of VAT, so the invoice total is €1,785. The VAT is 19 ÷ 119 = 15.97% of the gross.
Frequently asked questions
How do I remove 20% VAT from a price?+
Divide the VAT-inclusive price by 1.2. For example £60 ÷ 1.2 = £50 net, and the VAT is £10. Taking 20% off the gross (£12) would be wrong.
What are the UK VAT rates?+
The standard rate is 20% and covers most goods and services. A 5% reduced rate applies to items such as domestic energy and children’s car seats, and a 0% zero rate applies to most food, books and children’s clothes.
When do I have to register for VAT?+
UK businesses must register when VAT-taxable turnover exceeds £90,000 (the threshold since 1 April 2024) in a rolling 12-month period, or is expected to exceed it in the next 30 days. You can register voluntarily below the threshold.
What is the difference between net and gross?+
Net is the price before VAT; gross is the price after VAT has been added. Business-to-business prices are often quoted net, while prices shown to consumers must include VAT.
Can I use this for EU and other countries’ VAT?+
Yes. Enter any rate — for example 19% for Germany, 21% for Spain or the Netherlands, or 25% for Sweden. The maths for adding and removing VAT is the same everywhere.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.