VAT Calculator
Add or remove VAT at any rate — UK 20% by default.
Your numbers
UK standard VAT is 20%. Reduced rate is 5%.
Gross (with VAT)
- Net amount
- $100.00
- VAT
- $20.00
- Gross
- $120.00
Reverse — if $100.00 were the gross price: net $83.33 + VAT $16.67.
VAT (value-added tax) is the consumption tax used across the UK, EU, and many other countries. Unlike US sales tax, it's collected in stages along the supply chain — but for most people the practical question is simply: how do I add it, or strip it out of a price? Here's how.
What is VAT?
VAT is a tax on the value added at each stage of production and distribution. Businesses charge VAT on sales (output tax) and reclaim the VAT they pay on purchases (input tax), remitting the difference. The end consumer ultimately bears the cost, baked into the price.
How VAT differs from sales tax
- Sales tax is charged once, at the final sale to the consumer.
- VAT is charged at every stage, with businesses reclaiming what they paid — so it's collected gradually rather than all at once.
For a shopper, the effect is similar (tax on the final price), but the mechanics and compliance differ significantly for businesses.
UK VAT rates
- Standard rate: 20% — most goods and services.
- Reduced rate: 5% — some items like home energy and children's car seats.
- Zero rate: 0% — most food, books, and children's clothing.
Other countries set their own rates, so always use the correct one for your location.
Adding VAT
To add VAT to a net (pre-VAT) price:
VAT = net × (rate ÷ 100), and gross = net + VAT
On a £100 net price at 20%: 100 × 0.20 = £20 VAT, for a £120 gross price.
Removing VAT (reverse VAT)
To find the net price hidden inside a gross (VAT-inclusive) price — useful for invoices and expenses:
net = gross ÷ (1 + rate ÷ 100)
From a £120 gross price at 20%: 120 ÷ 1.20 = £100 net, with £20 of VAT. The VAT Calculator does both directions at once, so you can add or remove VAT without the arithmetic.
The bottom line
VAT is added as net × rate and removed as gross ÷ (1 + rate). The standard UK rate is 20%, with reduced and zero rates for specific goods. Use the VAT Calculator to add VAT to a price or back it out of a VAT-inclusive total in one step.
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by the rate as a decimal and add it: gross = net × (1 + rate ÷ 100). At 20%, a £100 net price becomes £120 gross, with £20 of VAT.
How do I remove VAT from a price?
Divide the gross (VAT-inclusive) price by (1 + rate ÷ 100). At 20%, £120 ÷ 1.20 = £100 net, meaning £20 was VAT. This “reverse VAT” is handy for invoices and expense claims.
What is the UK VAT rate?
The UK standard rate is 20% on most goods and services. A reduced 5% rate applies to some items (like home energy), and a 0% rate applies to most food, books, and children’s clothing.
What is the difference between VAT and sales tax?
Sales tax is charged once, at the final sale to the consumer. VAT is charged at every stage of the supply chain, with businesses reclaiming the VAT they pay — so it’s collected gradually. The consumer bears the cost either way.
Is VAT included in the displayed price?
In the UK and EU, prices shown to consumers must generally include VAT, so the sticker price is the gross. In business-to-business contexts, prices are often quoted net (excluding VAT), with VAT added at invoicing.
Who has to register for VAT?
Businesses must register once their taxable turnover exceeds the registration threshold (which varies by country), and can register voluntarily below it. Registered businesses charge VAT on sales and reclaim VAT on purchases.
Can I reclaim VAT?
VAT-registered businesses can usually reclaim the VAT they pay on legitimate business purchases (input tax), offsetting it against the VAT they collect on sales (output tax). Consumers cannot reclaim VAT.
Does this calculator work for any country’s VAT?
Yes. It defaults to the UK 20% rate, but you can enter any VAT or GST rate to add or remove it. Just set the rate to match your country (for example, 19%, 21%, or 23% across various EU states).