How to add and remove VAT
VAT (Value Added Tax) is a tax on most goods and services in the UK. The standard rate is 20%, with a reduced rate of 5% on some items (such as domestic energy) and a zero rate on others (such as most food and children's clothing).
To add VAT, multiply the net amount by 1.20 (for 20%). For example, £100 + 20% VAT = £120, of which £20 is VAT. To remove VAT from a gross (VAT-inclusive) price, divide by 1.20. For example, £120 ÷ 1.20 = £100 net, meaning £20 was VAT.
UK VAT rates
| Rate | Applies to |
|---|---|
| 20% (standard) | Most goods and services |
| 5% (reduced) | Domestic fuel, some energy-saving products |
| 0% (zero) | Most food, books, children's clothing |
Businesses must usually register for VAT once taxable turnover exceeds £90,000 in a 12-month period.
Frequently asked questions
How do I add 20% VAT to a price?
Multiply the net price by 1.20. For example £100 becomes £120, with £20 of VAT. Enter the net amount and choose “Add VAT” above.
How do I remove or reverse VAT?
Divide the VAT-inclusive price by 1.20. For example £120 becomes £100 net, so £20 was VAT. Choose “Remove VAT” in the calculator.
What is the current UK VAT rate?
The standard rate is 20%. A reduced 5% rate and a 0% rate apply to certain goods and services.
What is the VAT registration threshold?
For 2026/27 a business must register for VAT once its taxable turnover exceeds £90,000 over a rolling 12-month period.
Is this VAT calculator free?
Yes, completely free, with no signup. The calculation runs in your browser.