VAT calculator
Add VAT to a net price or take it off a VAT-inclusive amount.
Price excluding VAT£100.00
VAT at 20%£20.00
Price including VAT£120.00
20% standard rate; 5% reduced rate (for example home energy and children’s car seats); 0% zero rate (most food, books, children’s clothes).
How to remove VAT
To find the price before VAT, divide the VAT-inclusive amount by 1.2 at the 20% rate (or by 1.05 at 5%). Taking 20% off the total gives the wrong answer: £120 includes £20 of VAT, not £24.
Frequently asked questions
When does a business have to register for VAT?
When its VAT-taxable turnover goes over £90,000 in any 12-month period. Businesses below the threshold can register voluntarily.