VAT calculator
Add VAT to a price or take it out of one. Works at the standard rate of 20%, the reduced rate of 5% and the zero rate.
£100.00 excluding VAT, £20.00 VAT, £120.00 including VAT.
| Net (excluding VAT) | £100.00 |
|---|---|
| VAT at 20% | £20.00 |
| Gross (including VAT) | £120.00 |
Rates checked 24 October 2026 against GOV.UK VAT rates and HMRC VAT registration guidance. For guidance only, not tax or legal advice.
How to add and remove VAT
To add VAT at 20%, multiply the net price by 1.2. To remove VAT at 20%, divide the gross price by 1.2. For the reduced rate, use 1.05.
Example. A price of £240 including VAT at 20% is £240 ÷ 1.2 = £200 net, so the VAT is £40.
A common mistake is to take 20% off the gross price: £240 × 0.8 = £192, which is £8 too low.
UK VAT rates
| Rate | VAT | Applies to (examples) |
|---|---|---|
| Standard | 20% | Most goods and services, including professional fees such as estate agent, accountant and solicitor fees |
| Reduced | 5% | Domestic fuel and power, children’s car seats, mobility aids for older people |
| Zero | 0% | Most food, children’s clothes, books and newspapers |
Some things are exempt rather than zero-rated, such as most residential rent and many financial services. Exempt supplies carry no VAT, and they do not count in the same way when you work out VAT you can reclaim. Check HMRC’s guidance for your goods or services.
When a business must register for VAT
You must register if your VAT-taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over £90,000 in the next 30 days alone. You can ask to deregister if you expect taxable turnover to fall below £88,000.
Below the threshold you can register voluntarily, for example to reclaim VAT on your costs. A business that is not registered must not charge VAT.
VAT calculator questions
How do I work out VAT at 20%?
Multiply the price excluding VAT by 0.2 to get the VAT, or by 1.2 to get the price including VAT.
How do I take VAT out of a price?
Divide the price including VAT by 1.2 (for 20%) to get the price excluding VAT. The difference is the VAT. Don’t subtract 20% of the gross price; that gives the wrong answer.
What is the VAT fraction?
The VAT fraction is the share of a VAT-inclusive price that is VAT. At 20% it is 1/6, so £120 including VAT contains £20 of VAT. At 5% it is 1/21.
What is the VAT registration threshold in 2026?
£90,000 of VAT-taxable turnover in a rolling 12-month period. The deregistration threshold is £88,000.
Do estate agents, accountants and solicitors charge VAT?
Yes, if they are VAT-registered, their fees are standard-rated at 20%. Ask for fees including VAT so you can compare quotes properly.
Sources
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