VAT Calculator
Value-added tax is charged at each stage of production and sold on to the final customer, and in the UK and most of Europe it is built into shelf prices — so businesses and shoppers constantly need to move between net (before VAT) and gross (including VAT) figures. This VAT calculator does it in one step: add VAT to a net price, strip it out of a gross price, or find the rate from two prices. It comes with the UK’s standard (20%), reduced (5%) and zero rates preset, and a custom field for any other country’s rate. Prices default to pounds sterling but any of five currencies can be chosen.
How to use the vat calculator
- Choose whether you want to add VAT, remove VAT or find the rate.
- Enter the amount and pick a preset rate, or choose Custom and type your country’s rate.
- Read the net, VAT and gross amounts and the working beneath.
- Check the current rate for your goods with your tax authority — rates and which goods qualify can change.
Formula
Gross = net × (1 + rate). VAT = net × rate. Net = gross ÷ (1 + rate) — not gross × (1 − rate). At 20%, net = gross ÷ 1.2, so VAT is one-sixth (16.67%) of the gross price. Implied rate = (gross ÷ net − 1) × 100.
Worked examples
Adding 20% VAT
£100 plus 20% VAT: VAT is £20.00 and the price including VAT is £120.00.
Removing VAT from a receipt
A £120 receipt including 20% VAT has a net price of £100.00 and £20.00 of VAT.
The reduced rate
At the 5% reduced rate, a £84 gross price contains £4.00 of VAT on a net £80.00.
Net, gross and VAT at a glance
| Gross price (20% VAT) | Net price | VAT |
|---|---|---|
| £60 | £50.00 | £10.00 |
| £120 | £100.00 | £20.00 |
| £240 | £200.00 | £40.00 |
| £600 | £500.00 | £100.00 |
Rates around Europe
VAT is charged across the EU and in the UK, but rates differ by country and by type of goods, and change over time. For a non-UK rate, choose “Custom rate” and enter the figure from your national tax authority. For invoices, see our invoice generator.
Practice problems
Try these yourself first, then check your answer. The answers come from the calculator above.
- Add 20% VAT to £450.
Show answer
Price including tax (gross): £540.00 · VAT to add: £90.00
- A £75 price includes 5% VAT. What is the VAT?
Show answer
Price before tax (net): £71.43 · VAT included: £3.57
Common mistakes to avoid
- Taking 20% off a gross price to remove VAT. That removes too much; divide by 1.2 instead.
- Assuming one rate fits everything. In the UK most goods and services are standard-rated, but some are at 5% or 0%, and some are exempt (not the same as zero-rated).
- Mixing up VAT-inclusive and VAT-exclusive prices on quotes and invoices.
- Using an out-of-date rate. Check your national tax authority for current rates.
- Forgetting that VAT-registered businesses can usually reclaim VAT on purchases — the tax is not a cost to them in the same way.
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by 1 plus the VAT rate. For 20%: net × 1.2. £50 becomes £60.
How do I remove VAT from a price?
Divide the gross price by 1 plus the rate. At 20%, £120 ÷ 1.2 = £100. The VAT is £20.
What is the current UK VAT rate?
The standard rate is 20%, with a reduced rate of 5% for some goods and services and a 0% zero rate for others. Check GOV.UK for current details.
What is the difference between zero-rated and exempt?
Zero-rated goods are taxable at 0% (businesses can still reclaim VAT on costs); exempt supplies are outside VAT altogether and generally do not allow VAT recovery.
Does this work for other countries?
Yes — choose “Custom rate” and enter your country’s VAT rate, for example 19% in Germany. Rates vary and change, so check an official source.
Is this tax advice?
No. It is a calculator for education and everyday use; confirm treatment with HMRC or your accountant.
Sources and further reading
By Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Last reviewed September 26, 2026. Found a mistake? Tell us; see our editorial policy.