VAT calculator
Enter an amount, choose a rate and pick add or remove. The calculator shows the net price, the VAT and the gross total. It starts at the UK standard rate of 20%, with presets for the UK reduced and zero rates and for common EU standard rates.
Adding and removing VAT
- Add VAT: gross = net × (1 + rate). £250 net at 20% is 250 × 1.2 = £300, of which £50 is VAT.
- Remove VAT: net = gross ÷ (1 + rate), and VAT = gross − net. £300 gross at 20% is 300 ÷ 1.2 = £250 net, so the VAT is £50.
Taking 20% off the gross price is a common mistake: £300 less 20% is £240, which understates the net price by £10.
The VAT fraction
HMRC calls the share of VAT inside a VAT-inclusive price the VAT fraction: rate ÷ (100 + rate). At 20% that is 20/120, or 1/6, so the VAT in any standard-rated gross price is the price divided by 6. A £90 total contains £15 of VAT. At the 5% reduced rate the fraction is 5/105, or 1/21.
Zero-rated sales are still taxable, at 0%, and count towards your VAT-taxable turnover. Exempt sales, such as postage stamps, carry no VAT and don't count.
UK and EU rates in 2026
HMRC sets three UK rates: 20% for most goods and services, 5% on some, such as home energy and children's car seats, and 0% on zero-rated items, such as most food and children's clothes.
Only VAT-registered businesses can charge VAT. You must register when your VAT-taxable turnover for the last 12 months goes over £90,000, or when you expect it to go over £90,000 in the next 30 days alone.
The EU presets use the standard rates published by the European Commission, checked September 2026: Ireland 23%, Germany 19%, France 20%, Netherlands 21%, Spain 21% and Italy 22%. For what a UK invoice must show, read our VAT invoice requirements guide or start a VAT invoice.
Frequently asked questions
How do I work out the VAT in a price that already includes it?
Divide the gross price by 1 plus the rate to get the net amount; the VAT is the difference. At 20%, £540 including VAT is £450 net and £90 VAT, and the VAT is always one-sixth of the gross price.
Can I charge VAT if I'm not VAT-registered?
No. Only businesses registered with HMRC can charge VAT or show it on an invoice. Below the £90,000 threshold you can register voluntarily, which lets you reclaim VAT on your business costs but means adding VAT to your prices.
Does the calculator work for other countries?
Yes. The maths is the same for any VAT, GST or sales tax rate, so type in the rate you need. Which country's VAT applies to a cross-border sale depends on place-of-supply rules, so check HMRC guidance or ask an accountant first.