MasterTool

UK VAT Calculator

Add or remove UK VAT at the 20% standard, 5% reduced or 0% zero rate.

UK VAT rates last updated · reference source

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Currency: Amounts are calculated in the currency you select; this site does not convert between currencies and does not use live exchange rates.

Dated static reference; no live data is fetched. Verify current source values and assumptions before relying on results.

What this tool does

Calculates UK value added tax on a net price or extracts VAT from a VAT-inclusive price, using the static HMRC rate table shown below: 20% standard, 5% reduced and 0% zero rate.

How to use the UK VAT Calculator

  1. Enter the amount in your own currency.
  2. Choose whether the amount already includes VAT or not.
  3. Select the applicable rate.
  4. Read the net amount, VAT and gross total; copy or print the result.

Formula

VAT = net × rate/100; gross = net + VAT; net = gross ÷ (1 + rate/100)
net
Price excluding VAT
gross
Price including VAT
rate
20, 5 or 0

Removing 20% VAT means dividing by 1.2 — not subtracting 20%.

Worked example

A £240 invoice that already includes 20% VAT: divide by 1.2 to get the net price and the VAT element.

Inputs

  • Amount$240
  • Amount entered isGross — tax already included (remove tax)
  • VAT rateStandard rate — 20%

Result

  • Net amount (excl. VAT)$200.00
  • VAT$40.00
  • Gross amount entered$240.00

UK VAT rates

Rate%Typical items
standard20%Most goods and services
reduced5%Domestic fuel and power, children's car seats
zero0%Most food, children's clothes, books

Results explained

Net amount
Price before VAT.
VAT
VAT payable at the selected static rate.
Gross amount
Price including VAT.

Frequently asked questions

Divide the VAT-inclusive price by 1.2. £120 ÷ 1.2 = £100 net, so the VAT element is £20. Subtracting 20% of £120 (£24) is wrong.

Businesses must register when taxable turnover exceeds £90,000 in a rolling 12 months.

Zero-rated goods are VATable at 0%, so businesses can still reclaim input VAT. Exempt supplies are outside VAT and input VAT on them usually cannot be reclaimed.

Examples include domestic fuel and power, children's car seats and some energy-saving materials. Check HMRC guidance for your specific item.

No. It uses the dated static rate table on this page and runs entirely in your browser.