How to Add and Remove 20% UK VAT
The UK's standard VAT rate is 20%, with a 5% reduced rate for some goods. Here's how to add VAT and extract it from a gross price.
UK VAT rates
The UK applies three VAT rates:
- Standard (20%) — most goods and services.
- Reduced (5%) — items such as domestic energy and children's car seats.
- Zero (0%) — most food, books, and children's clothing.
The UK VAT Calculator defaults to 20% but the rate is editable for the 5% reduced rate.
Adding vs removing VAT
- Adding VAT: multiply the net price by 1.20. A £100 item becomes £120.
- Removing VAT (finding the net inside a VAT-inclusive price): divide by 1.20. £120 gross = £100 net + £20 VAT.
A common mistake is subtracting 20% from the gross price — that gives the wrong answer. Always divide by 1.20 to back out VAT correctly.
Who must register
You must register for UK VAT once your taxable turnover exceeds the registration threshold in any rolling 12-month period; voluntary registration is allowed below it.
How to use it
- Enter your amount.
- Choose add or remove VAT.
- The tool shows net, VAT, and gross instantly.