Last Updated on November 10, 2026
VAT arithmetic catches people in one specific place: taking VAT off. Adding 20% to £1,000 gives £1,200. Taking 20% off £1,200 gives £960, which is wrong. The VAT inside £1,200 is £200, not £240, because the 20% was charged on the net figure, not the gross one.
This calculator adds VAT to a net price or removes it from a gross one, at the UK standard rate of 20%, the reduced rate of 5%, or the zero rate.
No email address, no sign-up. Everything runs in your browser and nothing you type is sent anywhere.
How the sums work
- Adding VAT: multiply the net amount by the rate. At 20%, net £450 carries £90 of VAT, so the gross price is £540.
- Removing VAT: divide the gross amount by 1 plus the rate. At 20%, divide by 1.2. Gross £1,200 divided by 1.2 is £1,000 net, so the VAT inside it is £200.
The divide-by-1.2 step is the one worth remembering. Subtracting 20% from a gross figure always overstates the VAT, because the percentage was never charged on the gross figure in the first place.
Which rate applies
The rate depends on what you supply, not on what you would prefer to charge. In broad strokes: most goods and services take the 20% standard rate; a short list including domestic energy and children’s car seats takes the 5% reduced rate; and most food, books and children’s clothes are zero-rated. The full category lists live on GOV.UK, and that is the place to confirm yours, especially after a Budget.
Zero-rated is not exempt. A zero-rated sale is still a taxable supply: it counts towards your taxable turnover and you can normally reclaim the VAT on your related costs. An exempt supply, such as insurance or most education, sits outside the system: it does not count towards taxable turnover and you cannot normally reclaim input VAT on costs tied to it. Businesses that mix the two live with partial exemption rules, which is accountant territory.
What this does not tell you
- It does not tell you whether you should be VAT registered. That depends on your taxable turnover against the current registration threshold on GOV.UK.
- It does not handle the flat rate scheme, margin schemes or partial exemption. Those change the arithmetic and need an accountant, not a web page.
- It is a calculator, not tax advice.
Questions people ask
How do I take 20% VAT off a price?
Divide the VAT-inclusive price by 1.2. That gives the net amount; the difference is the VAT. Do not subtract 20% of the gross figure, which overstates the VAT.
What is the difference between zero-rated and exempt?
Both carry no VAT on the sale, but zero-rated supplies are still taxable supplies: they count towards your taxable turnover and input VAT can normally be reclaimed. Exempt supplies do not count towards taxable turnover and the related input VAT normally cannot be reclaimed.
Do I charge VAT if I am not VAT registered?
No. Only VAT-registered businesses charge VAT, and charging it without being registered is unlawful. If you are not registered, your price is simply your price.
Is my data stored?
No. The calculation runs in your browser. Nothing you type is sent anywhere.
- Profit margin calculator: work margins on net figures once the VAT is stripped out.
- UK software cost calculator: software prices are usually quoted ex VAT, which flatters them by 20%.
- Break-even calculator.
