# 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.

- URL: https://www.pyalm.com/blog/uk-vat-calculator-guide
- Author: Fadhil Abdulla
- Category: Free Tools
- Published: 2026-06-20
- Updated: 2026-06-20

---

## 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](https://www.pyalm.com/free-tools/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

1. Enter your amount.
2. Choose add or remove VAT.
3. The tool shows net, VAT, and gross instantly.

[Open the UK VAT Calculator](https://www.pyalm.com/free-tools/uk-vat-calculator) | [More free finance tools](https://www.pyalm.com/free-tools)