VAT Calculator
Use this free VAT calculator to instantly add or remove VAT from any price. Supports UK standard rate (20%), reduced rate (5%), and any custom VAT rate. Perfect for businesses, freelancers, and consumers.
VAT Calculator
How to Use the VAT Calculator
- Enter the price (either ex-VAT or inc-VAT)
- Enter the VAT rate (20% standard, 5% reduced, or your own rate)
- Select whether to add VAT or remove VAT
- Click Calculate for instant results
What Is VAT?
VAT (Value Added Tax) is a consumption tax applied to most goods and services in the UK and across the EU. Businesses registered for VAT collect it on behalf of HMRC and pass it on through their tax returns. Consumers pay VAT as part of the final purchase price.
UK VAT Rates
| VAT Rate | Rate | Applies To |
|---|---|---|
| Standard rate | 20% | Most goods and services |
| Reduced rate | 5% | Home energy, children’s car seats, some health products |
| Zero rate | 0% | Food, children’s clothing, books, public transport |
| Exempt | N/A | Insurance, education, health services |
VAT Calculation Examples
| Price (ex-VAT) | VAT Rate | VAT Amount | Price (inc-VAT) |
|---|---|---|---|
| £100 | 20% | £20 | £120 |
| £250 | 20% | £50 | £300 |
| £80 | 5% | £4 | £84 |
| £1,000 | 20% | £200 | £1,200 |
How to Remove VAT from a Price
To remove VAT from a VAT-inclusive price, divide by (1 + VAT rate). For example, to remove 20% VAT from £120: £120 ÷ 1.20 = £100 (ex-VAT). The VAT element is £20.
VAT Calculator FAQ
How do I calculate VAT at 20%?
To add 20% VAT: multiply the price by 1.20. To remove 20% VAT from an inc-VAT price: divide by 1.20. For example, £200 ÷ 1.20 = £166.67 ex-VAT.
Do I need to register for VAT?
As checked on 19 August 2026, HMRC says UK businesses generally need to register when taxable turnover for the previous 12 months goes over £90,000, or when they expect it to go over £90,000 in the next 30 days. Different rules can apply to overseas businesses and special circumstances; always check current HMRC guidance.
Is VAT the same as sales tax?
They are similar but not identical. VAT is collected at each stage of production and sale, with each business reclaiming the VAT they have paid. Sales tax (used in the US) is collected only at the final point of sale.
Method, rates and assumptions
To add VAT, multiply the net amount by 1 + rate. At 20%, £250 excluding VAT becomes £300 including VAT, of which £50 is VAT. To remove VAT from a VAT-inclusive price, divide by 1 + rate; do not simply subtract 20%. For example, £300 ÷ 1.20 = £250 net.
The calculator accepts a rate you choose. The current UK headline rates checked for the 2026/27 period are 20% standard, 5% reduced and 0% zero rate, but the correct treatment depends on the specific product, service, customer and transaction. Exempt and outside-scope supplies are not the same as zero-rated supplies.
Official sources and review note
Last reviewed on 19 August 2026 by Badar Ashfaq using the official sources above. Results are general estimates and not tax or accounting advice. See our editorial policy and methodology.