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VAT at 20%, 5% or 0%

Add VAT or
take it out

Put VAT on a price or find the VAT inside a total, with the net, VAT and gross figures to the penny.

Price with VAT

£120.00

£100.00 plus 20% VAT of £20.00.

What do you want to do?

Pence are fine, for example 49.99.

VAT rate

Standard rate

Net (before VAT)
£100.00
VAT at 20%
£20.00
Gross (including VAT)
£120.00

To add VAT, multiply the net price by 1.2. VAT is rounded to the nearest penny.

Put this calculator on your site

Free to embed on any website or blog. It needs no script, sets no cookies and works in any page builder that accepts an iframe.

Embed code
<iframe
  src="https://taptax.co.uk/tax-calculator/vat/embed"
  title="VAT calculator"
  width="100%"
  height="440"
  loading="lazy"
  style="border:1px solid #e5e7eb;border-radius:12px;max-width:100%"
></iframe>
<p style="font-size:12px">
  <a href="https://taptax.co.uk/tax-calculator/vat">VAT calculator by TapTax</a>
</p>

x 1.2
to add 20% VAT to a price
÷ 1.2
to take 20% VAT out of a VAT-inclusive price
1/6
of a VAT-inclusive price is VAT at 20%
Net and gross
The net price is the price before VAT. The gross price is the price including VAT, the amount the customer actually pays. VAT is the difference between the two.

How to add VAT to a price

Multiply the net price by 1.2 to add VAT at 20%. The VAT itself is 20% of the net price, so on £100.00 it is £20.00 and the customer pays £120.00. At the reduced rate of 5%, multiply by 1.05 instead.

How to remove VAT from a price

Divide the VAT-inclusive price by 1.2 to get the net price. The VAT is what is left: the gross price minus the net, which always works out as 1/6 of the gross price at 20%. That 1/6 is the VAT fraction, and it is the quickest way to find the VAT in a receipt total.

Price including VATNet priceVAT at 20%
£10.00£8.33£1.67
£49.99£41.66£8.33
£100.00£83.33£16.67
£250.00£208.33£41.67
£1,000.00£833.33£166.67
£4,800.00£4,000.00£800.00

Why you cannot just take 20% off

VAT is 20% of the net price, not of the gross. Taking 20% off £100.00 gives £80.00, but the real net price inside £100.00 is £83.33: the VAT is £16.67, not £20.00. The mistake is small on one receipt and large across a year of expenses, and it overstates the VAT you reclaim, which HMRC will correct.

Which VAT rate applies

  • Standard rate, 20%. Most goods and services.
  • Reduced rate, 5%. Some goods and services, such as children’s car seats and home energy.
  • Zero rate, 0%.Zero-rated goods and services, such as most food and children’s clothes. Still VAT taxable, just at nothing.
  • Exempt. Outside VAT altogether, such as postage stamps and most financial and property transactions. There is no VAT to add or remove.

Showing VAT on an invoice

Only a VAT-registered business can charge VAT. Its VAT invoice shows the net amount, the rate, the VAT and the total, plus its VAT registration number and a sequential invoice number. VAT can be worked out line by line or on the invoice total; HMRC lets you round the final VAT total down to the nearest penny, and this calculator rounds to the nearest penny, so it can be a penny higher.

If you are not registered, your invoices carry no VAT at all. The registration threshold and the flat rate scheme are on the VAT registration calculator.

Key takeaways
  • Add 20% VAT by multiplying the net price by 1.2.
  • Remove it by dividing the gross price by 1.2; the VAT is 1/6 of the gross.
  • Taking 20% off a VAT-inclusive price removes too much.
  • Only VAT-registered businesses charge VAT, and a VAT invoice shows net, VAT and total separately.

Pricing a job, not just a price?

The profit margin calculator works on prices before VAT and shows the VAT-inclusive price alongside.

Profit margin calculator

Frequently asked questions

How do I add VAT to a price?

Multiply the price before VAT by 1.2 for the standard rate of 20%. £100.00 becomes £120.00, of which £20.00 is VAT.

How do I work out VAT from a total that includes VAT?

Divide the total by 1.2 to get the price before VAT, then subtract that from the total to get the VAT. From £120.00, the price before VAT is £100.00 and the VAT is £20.00.

Why is removing VAT not the same as taking 20% off?

Because VAT is 20% of the price before VAT, not of the total. Taking 20% off a VAT-inclusive total removes too much: the VAT in a £120.00 total is £20.00, not £24.00.

What are the UK VAT rates?

The standard rate is 20% and covers most goods and services. The reduced rate is 5%, for things like children's car seats and home energy. The zero rate is 0%, for most food and children's clothes. Some things, such as postage stamps and financial services, are exempt.

Do I charge VAT if I am not VAT registered?

No. Only VAT-registered businesses charge VAT. You must register once your taxable turnover passes the registration threshold over any rolling 12 months; the VAT registration calculator checks where you stand.

Invoices with the VAT worked out.

TapTax creates and sends your invoices, tracks which ones are paid and files your quarterly updates to HMRC. Start on the free plan, no card needed.

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Where these figures come from

Rates from GOV.UK.