VAT Calculator: How to Add and Remove VAT in the UK

TL;DR

• Use the VAT calculator to add VAT to a net price or remove it from a gross price in one step
• The calculator works with the standard 20% rate and the reduced 5% rate
• To remove VAT from a gross price: divide by 1.20 — the calculator does this automatically
• VAT-registered businesses must show net price, VAT amount, and gross total separately on every invoice
• Free, no account or signup needed

VAT sits inside almost every UK business transaction, and getting it wrong on an invoice or tax return has real consequences. The VAT calculator handles both directions — adding VAT to a net price and stripping VAT out of a gross price — so you always have the right figure.

How to Use the Calculator

Go to the VAT calculator and choose which calculation you need. To add VAT: enter the net (ex-VAT) amount and the VAT rate, and the tool shows the VAT amount and the gross total you charge the customer. To remove VAT: enter the gross (VAT-inclusive) price and the rate, and it returns the net amount and the tax portion separately. The standard UK rate is 20%, but the calculator works with reduced rates (5%) and zero rate too.

When to Use This Calculator

Writing invoices: UK VAT-registered businesses must show the net price, VAT amount, and gross total separately on every invoice. Enter your net price here to get the correct VAT figure without risking a rounding error.

Checking supplier invoices: If a supplier sends a gross price and you need to reclaim the VAT, use the reverse calculator to confirm the exact VAT amount before submitting your VAT return.

Mixed-rate baskets: Some goods are standard-rated (20%) and others are reduced-rate (5%) or zero-rated. Run each category separately through the calculator and add the results.

Budgeting as a non-VAT-registered business: If you cannot reclaim input tax, a 20% VAT charge is a real cost. Use the calculator to see the full gross price before committing to a purchase.

Frequently Asked Questions

How do I calculate VAT at 20% on a net price? Multiply the net amount by 0.20 to get the VAT. Add it to the net to get the gross. For a £500 net price: 500 × 0.20 = £100 VAT, gross total £600. The VAT calculator shows this breakdown in one step.

How do I remove VAT from a gross price? Divide the gross price by 1.20 (for a 20% rate) to get the net. The difference between gross and net is the VAT amount. For £240 gross: 240 ÷ 1.20 = £200 net, £40 VAT. The calculator handles this in reverse mode automatically.

What is the difference between 0% VAT and VAT-exempt? Zero-rated goods are VAT-taxable at 0% — the supplier can still reclaim input VAT on related costs. Exempt goods sit outside the VAT system entirely and the supplier cannot reclaim input VAT. The practical difference matters for businesses with mixed supplies.

Can I use this alongside the percent off calculator? Yes. If a product is discounted before VAT is applied, calculate the discounted net price using the percent off calculator first, then run that net figure through the VAT calculator to find the final gross price.

The VAT calculator is free with no sign-up required. For related financial tasks, the commission calculator handles sales commission calculations, and the percent off calculator works out discounts before VAT is added.