VAT Calculator
Add VAT to a net (ex-VAT) price or remove VAT from a VAT-inclusive gross total at any rate. Enter a net amount and rate to get the gross, or enter a gross amount to extract the net (reverse VAT). Common presets: 20% UK/EU standard, 5% UK reduced, 10% Australia GST, 9% Singapore GST, 5% UAE VAT. Shows net, VAT amount, and gross instantly. Use the UK VAT Calculator for HMRC-specific rates and guidance.
Add or remove UK VAT at 20%, 5%, or zero rate — instantly shows net, VAT amount, and gross total.
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Formula
Add VAT: Gross = Net × (1 + Rate ÷ 100)\nRemove VAT: Net = Gross ÷ (1 + Rate ÷ 100)
At 20%: Net × 1.20 = Gross; Gross ÷ 1.20 = Net. At 5%: Net × 1.05 = Gross; Gross ÷ 1.05 = Net. The VAT amount is always the difference between gross and net.
Worked Example
What is 100 plus VAT?
£100 net × 20% = £20.00 VAT → £120.00 gross
What is 165 plus VAT?
£165 net × 20% = £33.00 VAT → £198.00 gross
Adding VAT — B2B invoice:
A marketing agency quotes a client £4,500 net. The invoice must show the VAT-inclusive total.
£4,500 × 20% = £900.00 VAT → £5,400.00 gross
Removing VAT — retail receipt:
A business receipt shows £84.00 including 20% VAT. What is the net?
£84 ÷ 1.20 = £70.00 net • VAT = £14.00
Reduced rate (5%) — domestic energy:
A quarterly gas bill of £230 includes 5% VAT.
£230 ÷ 1.05 = £219.05 net • VAT (5%) = £10.95
Common Mistakes
- Subtracting 20% to remove VAT. £120 − 20% = £96, not £100. The correct method is £120 ÷ 1.20 = £100.
- Adding VAT twice. If a price is already VAT-inclusive, do not add VAT again. Use "Remove VAT" to verify first.
- Applying the wrong rate. Some goods qualify for the 5% reduced rate (domestic fuel, children's car seats) or 0% (most food, books).
Guide
How to Use
- 1
Select Add or Remove VAT
"Add VAT" for a net price that needs a gross total. "Remove VAT" to extract the net from a VAT-inclusive price.
- 2
Enter the amount
Type the price in pounds. The label shows which type you are entering.
- 3
Select the VAT rate
UK standard is 20%. Choose 5% for reduced rate goods, 0% for zero-rated, or enter a custom rate.
- 4
Review all three figures
Net, VAT amount, and gross are shown together. Copy them for invoices or records.
Next Steps
What to do next
FAQ
Frequently Asked Questions
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When to use this calculator
- →Adding VAT to a net amount for a B2B invoice or customer-facing price
- →Removing VAT from a gross receipt to find the net (reverse VAT)
- →Checking VAT at the 5% reduced rate for domestic energy, children's car seats, or certain services
- →Calculating VAT at any custom rate for non-UK markets or specific goods categories
Example calculation
Adding VAT: Net £850 + 20% VAT = Gross £1,020 (VAT: £170)
Removing VAT: Gross £1,020 ÷ 1.20 = Net £850 (VAT: £170)
To remove VAT, divide by 1.20 — do not subtract 20%. Subtracting 20% from £1,020 gives £816, which is wrong.
When do you need to add or remove VAT?
Adding VAT is needed when you are creating a customer-facing price or an invoice from a net (ex-VAT) amount. If your cost-plus pricing produces a net of £850, you need to add 20% VAT to get the correct gross price of £1,020 to show on the invoice.
Removing VAT (reverse VAT) is needed when you have received a gross amount and need to find the net. A business receipt showing £240 including 20% VAT has a net of £200 — you cannot simply subtract 20% (that would give £192, which is wrong). The correct method is to divide by 1.20.
VAT-exclusive vs VAT-inclusive pricing is a common source of confusion in B2B invoicing. Most B2B prices are quoted net (ex-VAT) because VAT-registered businesses can reclaim input VAT. Consumer-facing retail prices are typically gross (VAT-inclusive). Always clarify whether a quoted price is net or gross.
UK VAT rates and when they apply
20% Standard rate
Most goods and services — professional services, software, electronics, clothing (adult), restaurant meals, alcohol, motor vehicles.
5% Reduced rate
Domestic fuel and power (gas, electricity), children's car seats, energy-saving materials, women's sanitary products, smoking cessation products.
0% Zero rate
Most food (not restaurant meals), children's clothing and footwear, most books and newspapers, public transport, most prescription medicines, exports.
VAT rates are sourced from HMRC. Always verify rates for your specific goods or services before filing a VAT return.
Country-specific VAT and GST calculators
This calculator works at any custom rate. For dedicated country pages with official rate tables and local guidance, use one of the calculators below.
Using VAT figures on an invoice?
Once you have the VAT-inclusive and VAT-exclusive amounts, the next step is typically setting a payment due date. Use the Invoice Due Date Calculator to find when the invoice is due under Net 30, Net 60, or any other payment terms — and the Real Due Date Calculator to check whether that date falls on a working day.
Common calculations
What is £100 plus VAT at 20%?
£100 × 1.20 = £120 gross. VAT amount: £20. Use the calculator above — enter £100 net, select 20%, and click Add VAT.
How do I remove 20% VAT from £120 (reverse VAT)?
£120 ÷ 1.20 = £100 net. VAT: £20. Never subtract 20% directly — £120 − 20% = £96, which is wrong. The reverse formula always divides by (1 + rate).
How do I add 5% VAT to a price?
Multiply by 1.05. Example: £200 × 1.05 = £210 (VAT: £10). To remove 5% VAT from a gross: £210 ÷ 1.05 = £200. The 5% reduced rate applies to domestic fuel, children's car seats, and qualifying energy-saving materials in the UK.
What is a VAT-exclusive vs VAT-inclusive price?
VAT-exclusive (net) is the price before VAT — used on B2B invoices. VAT-inclusive (gross) is the final price including VAT — what consumers pay at retail. This calculator converts in both directions at any rate.
Is the gross margin calculated on the net or gross price?
Gross margin is calculated on the net (ex-VAT) price — before VAT is added. Adding VAT to a selling price does not change your margin; it only changes the gross amount your customer pays. Use the Margin Calculator with net prices.
Common VAT questions answered
What is £100 plus VAT?
£100 plus 20% VAT = £120 gross. The VAT amount is £20. Calculation: £100 × 1.20 = £120. For 5% VAT: £100 × 1.05 = £105 (VAT: £5).
Use the dedicated add 20% VAT to 100 pageHow do I remove 20% VAT from £120?
£120 ÷ 1.20 = £100 net. The VAT is £20. Do not subtract 20% from £120 — that gives £96, which is wrong. Always divide by (1 + rate) to reverse VAT.
Use the dedicated remove 20% VAT from 120 pageWhat is VAT-inclusive vs VAT-exclusive?
VAT-exclusive (net) is the price before VAT is added — what B2B invoices typically show. VAT-inclusive (gross) is the final price including VAT — what consumers pay. Use this calculator to convert between the two in either direction.
Read the VAT inclusive vs exclusive guideHow do I add 5% VAT to a price?
Multiply by 1.05. Example: £200 × 1.05 = £210 (VAT: £10). The 5% reduced rate applies to domestic fuel, children's car seats, and certain energy-saving materials in the UK.
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