Add VAT Your amount excludes VAT
Remove VAT Your amount includes VAT
Example. £100 plus VAT at 20% is £120.00. £100 including VAT at 20% is £83.33 net and £16.67 VAT.
How to add VAT
To add VAT to a net (VAT-exclusive) price, multiply it by 1 plus the VAT rate. At the standard rate of 20% that means multiplying by 1.2, so £100 plus VAT is £120. At the reduced rate of 5%, multiply by 1.05.
How to remove VAT
To take VAT off a gross (VAT-inclusive) price, divide it by 1 plus the VAT rate. At 20% that means dividing by 1.2, so £120 including VAT is £100 before VAT. Taking 20% off the gross price gives the wrong answer: 20% of £120 is £24, not the £20 of VAT it contains.
The VAT fraction
A shortcut for the VAT inside a gross price is the VAT fraction. At 20% the VAT is one sixth of the gross amount; at 5% it is one twenty-first.
Flat Rate Scheme
Small businesses can pay HMRC a fixed percentage of their turnover instead. Use the VAT Flat Rate Scheme calculator to compare it with standard VAT accounting for your type of business.
UK VAT rates
| Rate | Percentage | Applies to |
|---|---|---|
| Standard rate | 20% | Most goods and services |
| Reduced rate | 5% | For example domestic gas and electricity and children's car seats |
| Zero rate | 0% | For example most food, books and children's clothes |
Frequently asked questions
How do I add 20% VAT to a price?
Multiply the net price by 1.2. For example, £100 plus VAT at 20% is £120.
How do I work out the VAT in a VAT-inclusive price?
At 20%, divide the gross price by 6 to get the VAT, or by 1.2 to get the net price. £120 including VAT is £100 net and £20 VAT.
Why can't I just take 20% off the gross price?
Because VAT is 20% of the net price, not of the gross. 20% of £120 is £24, but the VAT inside £120 is only £20.
What are the UK VAT rates?
The standard rate is 20%, the reduced rate is 5% and the zero rate is 0%. Some supplies are exempt or outside the scope of VAT altogether.
Related calculators
Sources: VAT rates on GOV.UK.
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