VAT Calculator, Add or Remove VAT Instantly

Last updated: March 2026, using current UK VAT rates.

How to calculate VAT in the UK

VAT is usually calculated as a percentage of the net price of goods or services. The standard UK VAT rate is 20%, although some goods qualify for the reduced rate of 5% or the zero rate.

To add VAT, multiply the net price by 1.20 for standard rate VAT. For example, a £100 product with 20% VAT becomes £120.

To remove VAT, divide the gross price by 1.20. For example, £120 including VAT becomes £100 excluding VAT.

This VAT calculator does the calculation instantly and works for the main UK VAT rates.

UK VAT rates explained

The UK currently uses three main VAT rates.

Standard rate, 20%

This applies to most goods and services including electronics, clothing, professional services, and restaurant meals.

Reduced rate, 5%

This rate applies to certain items such as home energy, children’s car seats, and some renovation work on residential property.

Zero rate, 0%

Some goods are zero rated, meaning VAT is technically charged at 0%. Examples include most food items, books, and children’s clothing.

Using a VAT calculator helps ensure VAT is calculated correctly whether you are preparing invoices, checking supplier pricing, or calculating VAT exclusive amounts.

Frequently asked questions

How do you calculate VAT from a total price?

To remove VAT from a price that already includes VAT, divide the total by 1.20 if the standard 20% rate applies. The result gives the price excluding VAT.

How do you add VAT to a price?

Multiply the net price by 1.20 to add 20% VAT. For example, £50 excluding VAT becomes £60 including VAT.

What is the current UK VAT rate?

The standard UK VAT rate is 20%. Some goods and services qualify for reduced VAT at 5% or zero rate VAT at 0%.

What is the VAT portion of a price including VAT?

To find the VAT portion of a gross price, divide the total by 6 when the 20% rate applies. For example, the VAT portion of £120 is £20.