UK VAT calculator
Add VAT to a price, or find the VAT in a price that already includes it. To remove 20% VAT, divide by 1.2.
| Net (excluding VAT) | £100.00 |
| VAT | £20.00 |
| Gross (including VAT) | £120.00 |
How to add or remove VAT
- Add 20% VAT: multiply the net price by 1.2. £100 becomes £120.
- Remove 20% VAT: divide the gross price by 1.2. £120 becomes £100, so the VAT is £20. Taking 20% off £120 would give £96, which is wrong.
- The VAT inside a 20% price is always one sixth of it. For the 5% rate it is one twenty-first.
UK VAT rates
| Rate | Applies to (examples) |
|---|---|
| 20% standard | Most goods and services |
| 5% reduced | Home energy, children’s car seats, some energy-saving installations |
| 0% zero | Most food, children’s clothes, books and newspapers |
The VAT registration threshold is £90,000 of taxable turnover over any rolling 12 months. Below it, registering is optional.
VAT on invoices and receipts
A VAT invoice must show the net amount, the rate and the VAT for each line, and the total including VAT. Businesses on the Flat Rate Scheme charge customers the normal rate but pay HMRC a fixed percentage of their gross turnover, so this calculator is still the right one for the price on the invoice.
Prices shown to consumers in shops and online must include VAT. Trade price lists often show prices before VAT, which is why it is easy to confuse the two when you compare quotes from different suppliers.
Questions
How do I work out VAT backwards?
Divide the price including VAT by 1.2 to get the price before VAT. The difference is the VAT.
What is 20% VAT on £1,000?
£200, making £1,200 including VAT.
Is VAT charged on food?
Most food is zero-rated, but hot takeaway food, confectionery, crisps and soft drinks are standard-rated at 20%.
What is the difference between zero-rated and exempt?
Zero-rated goods are taxable at 0%, so a business selling them can still reclaim VAT on its costs. Exempt supplies, such as most insurance and postage stamps, are outside VAT, and the VAT on related costs usually cannot be reclaimed.
Sources
Checked 28 September 2026. OneCalcs is independent and not affiliated with HMRC or any government department.