VAT Calculator (Add or Remove VAT)
Add VAT to a price or remove VAT from a total, at the standard 20%, reduced 5% or zero rate.
Last checked 04/11/2026. Sources: GOV.UK: VAT rates.
Guide
How VAT is calculated
Add VAT: multiply the net price by 1.2 for 20% (or 1.05 for 5%). £250 + 20% VAT = £300, of which £50 is VAT.
Remove VAT: divide the VAT-inclusive total by 1.2 (or 1.05). £600 including VAT is £500 net and £100 VAT. A quick check at 20%: the VAT in a VAT-inclusive price is one sixth of it.
Removing VAT is not the same as taking 20% off: 20% off £600 is £480, which is wrong.
Which rate applies?
The standard rate of 20% covers most goods and services. The reduced rate of 5% applies to some things, for example children’s car seats and home energy. The zero rate applies to things such as most food and children’s clothes. Some goods and services are exempt from VAT altogether, which is different from zero-rated. The full list is on GOV.UK.
Prices you see in shops
Prices shown to consumers in the UK include VAT. Business-to-business prices are often quoted excluding VAT, so check which one you have before you calculate.
Common questions
How do I work out VAT backwards?
Divide the total by 1.2 to get the net price, then subtract that from the total to get the VAT. For 5%, divide by 1.05.
What is the difference between zero-rated and exempt?
Zero-rated goods are VAT-taxable at 0%. Exempt goods are outside the VAT charge. It matters to businesses reclaiming VAT; for a shopper the price has no VAT in either case.
Has the standard rate changed recently?
The standard rate has been 20% since 4 January 2011. Check GOV.UK for any change.