Free tool

VAT Calculator — Add or Remove VAT

Type an amount and choose whether it includes VAT. Results update as you type.

100% freeNo signup20%, 5%, 0% or custom
This amount
VAT rate
Net (excluding VAT)£0.00
VAT£0.00
Gross (including VAT)£0.00

VAT formulas

To…At 20%Any rate
Add VATnet × 1.2net × (1 + rate ÷ 100)
Remove VATgross ÷ 1.2gross ÷ (1 + rate ÷ 100)
VAT in a gross pricegross ÷ 6gross × rate ÷ (100 + rate)

The most common mistake is removing VAT by taking 20% off the gross price. On £120 that gives £96 — but the correct net is £100, because the VAT was 20% of the net, not of the total.

VAT on invoices

If you're VAT-registered, your invoices must show your VAT number, the net amount, the VAT rate and amount for each item, and the total. Create one with the free invoice generator.

FAQ

Frequently asked questions

How do I remove 20% VAT from a price?

Divide the gross amount by 1.2. £120 ÷ 1.2 = £100 net, so the VAT is £20. Do not take 20% off the gross — that gives the wrong answer (£96).

How do I add 20% VAT?

Multiply the net amount by 1.2. £100 × 1.2 = £120.

What are the UK VAT rates?

Standard 20%, reduced 5% (for example home energy and some children's car seats) and zero 0% (most food, books and children's clothes). Some things are exempt, which is different from zero-rated.

Do I have to charge VAT as a freelancer?

Only if you are VAT-registered. Registration is compulsory once taxable turnover passes the threshold over a rolling 12 months; you can also register voluntarily.

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