Add VAT to a price excluding VAT, or take VAT out of a price that already includes it. The default is the 20% UK standard rate, and you can type any other rate.
Results are estimates for planning. Check the figures before you make a financial or health decision.
How the VAT works
There are two directions.
Adding VAT: VAT = net price × rate ÷ 100. The gross price is the net price plus that VAT. At 20%, this is the same as multiplying by 1.2.
Removing VAT: net price = gross price ÷ (1 + rate ÷ 100). The VAT is the gross price minus the net price. At 20% you divide by 1.2.
A common mistake is to take 20% off a VAT-inclusive price. That gives the wrong answer, because the VAT is 20% of the net price, which is only one-sixth of the gross price at the standard rate.
The tool uses whatever rate you enter. The UK has a standard rate of 20%, a reduced rate of 5% for some goods such as domestic fuel, and a zero rate for things like most food. It does not decide which rate applies to a particular item, and it does not deal with partial exemption or VAT schemes.
Worked example
Using the default values in the calculator above:
| Input | Value |
|---|---|
| Price | £120 |
| VAT rate | 20 % |
| What you want to do | Add VAT to this price |
Price including VAT: £144.00
| Net price | £120.00 |
|---|---|
| VAT | £24.00 |
| VAT rate | 20% |
Tips and common mistakes
Check which rate applies to the goods or service, and which price you are starting from: the net price or the price with VAT. Round only at the end if you are adding up many items, to avoid small differences against an invoice. If you are a business, keep to the figures on a VAT invoice and check the registration rules and schemes on GOV.UK. This is general information, not tax advice.
Frequently asked questions
How do I take 20% VAT off a price?
Divide the VAT-inclusive price by 1.2. Do not subtract 20% of it, because VAT is calculated on the net price, not the gross price.
What VAT rates are there in the UK?
A standard rate of 20%, a reduced rate of 5% and a zero rate. Which one applies depends on the goods or service, so check GOV.UK.
Can I use it for VAT in other countries?
Yes. Type the local rate into the rate box and the same maths applies. The tool only does the arithmetic and does not know local rules.