VAT calculator
Add VAT to a price, or work out what a VAT-inclusive price was before the tax. Standard and reduced rates.
How this is calculated
Adding VAT multiplies the net price by the rate and adds it on. At 20% a £1,000 net price becomes £1,200.
Removing VAT is not the same as taking 20% off. You divide by 1.2, not multiply by 0.8. Taking 20% off £1,200 gives £960, which is wrong by £40.
The standard rate is 20% and covers most goods and services. The reduced rate of 5% applies to things like domestic energy, children's car seats and some home energy-saving work.
Some things are zero rated, which is different from exempt. Zero rated supplies are taxable at 0% and let the seller reclaim input VAT; exempt supplies do not.
Rates used · 2026/27
| Standard rate | 20% |
| Reduced rate | 5% |
| Zero rated | 0%, most food, books, children's clothes |
| To remove 20% VAT | divide by 1.2, do not take 20% off |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
Adding 20% VAT to £1,000 gives £200 of VAT and £1,200 in total. Removing VAT from £1,000 works the other way: divide by 1.2 to get £833.33 net and £166.67 of VAT. Taking 20% off would have given £800, which is wrong by over £33.
Common questions
Why can I not just take 20% off to remove VAT?
Because the 20% was added to the smaller number. Removing it means dividing by 1.2. On a £1,200 gross price the net is £1,000, not £960.
What is the reduced rate for?
Domestic fuel and power, children's car seats, mobility aids for older people, and certain energy-saving materials, among others.
What is the difference between zero rated and exempt?
Zero rated supplies are taxable at 0%, so the business can still reclaim VAT on its own costs. Exempt supplies are outside VAT entirely and the business cannot reclaim.
Do I have to register for VAT?
Only above the registration threshold, or voluntarily below it. The threshold changes, so check the current figure on gov.uk before deciding.