VAT Calculator
Add VAT to a price or find the price before VAT at the UK standard, reduced or zero rate.
Result
£120.00
- VAT
- £20.00
- VAT rate
- 20%
Adding VAT at 20% to £100.00 gives £20.00 of VAT, so the price including VAT is £120.00.
Calculation breakdown
| Step | Formula | Result |
|---|---|---|
| VAT | £100.00 × 20% | £20.00 |
| Price including VAT | £100.00 + £20.00 | £120.00 |
How it works
Choose Add VAT or Remove VAT, enter the amount and pick the rate. The calculator shows the price before VAT, the VAT and the price including VAT.
Worked example
Adding the 20% standard rate to a £100 price:
- VAT: 100 × 20% = £20.00
- Price including VAT: 100 + 20 = £120.00
Going the other way, £120 including VAT at 20%:
- Price before VAT: 120 ÷ 1.2 = £100.00
- VAT: 120 − 100 = £20.00
Rounding
Amounts are rounded to the nearest penny, with half a penny rounding up.
Sources
Frequently asked questions
What are the UK VAT rates?
The standard rate is 20% and applies to most goods and services. The reduced rate is 5%, for some goods and services such as home energy, and the zero rate is 0%, for items such as most food. These are the rates listed by GOV.UK.
How do I add VAT to a price?
Multiply the price by the VAT rate and add the result to the price. At 20%, a £100 price carries £20 of VAT, so the gross price is £120. GOV.UK describes VAT in the same way, as the selling price multiplied by the VAT rate and then added to the selling price.
How do I take VAT off a price that already includes it?
Divide the gross price by 1 plus the VAT rate. At 20% that means dividing by 1.2, so £120 becomes £100 before VAT and the VAT is £20. Do not take 20% off the gross price, because the VAT was worked out on the smaller price before VAT.
What is the difference between zero-rated and exempt?
Zero-rated goods are taxable at 0%, so VAT is charged at nil. Exempt goods, such as postage stamps and financial and property transactions, are outside VAT altogether, according to GOV.UK. The calculator treats a zero-rated sale as 0%, and an exempt item has no VAT to calculate.
When did the standard rate become 20%?
GOV.UK says the standard rate rose to 20% on 4 January 2011, up from 17.5%. The rates are held in a data file that carries its source and the date it was last checked, so this calculator can be updated when a rate changes.
How is VAT rounded?
This calculator rounds VAT to the nearest penny, with half a penny rounding up. Businesses may round differently on invoices, so a figure on an invoice can differ by a penny.
Results are estimates for information only, not tax advice. Check HMRC guidance if you are unsure which rate applies to a product or service.