VAT Calculator

How VAT is calculated

VAT (Value Added Tax) is charged as a percentage of a price. In the UK the standard rate is 20%, with a reduced rate of 5% for some goods and services and a zero rate for others. The calculator above works in both directions:

• Adding VATto a net (VAT-exclusive) amount: VAT = net × (rate ÷ 100), and gross = net + VAT.
• Removing VATfrom a gross (VAT-inclusive) amount: net = gross ÷ (1 + rate ÷ 100), and VAT = gross − net.

For example, adding 20% VAT to a net amount of £100 gives £20 of VAT and a gross total of £120. Working backwards from a gross amount of £120 returns £100 net and £20 VAT.

This calculator is a general guide. Always confirm the correct VAT rate and treatment for your goods or services with HMRC.

Spending too long on VAT, reconciliations and routine bookkeeping? See how dedicated bookkeeping support works.