VAT Calculator
Calculated automatically • 2025 ratesNet Amount
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VAT
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Total
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Enter an amount and choose a VAT rate to see results.
Quick VAT Reference Table
Use this table to quickly check common VAT conversions for everyday amounts.
| Net (£) | VAT 20% (£) | Gross (£) |
|---|---|---|
| 1.00 | 0.20 | 1.20 |
| 5.00 | 1.00 | 6.00 |
| 10.00 | 2.00 | 12.00 |
| 50.00 | 10.00 | 60.00 |
| 100.00 | 20.00 | 120.00 |
What is VAT?
Value Added Tax (VAT) is a consumption tax applied to most goods and services in the UK. The standard VAT rate is 20%, with other reduced rates for specific items such as energy (5%) or essential goods (0%).
Every business that is VAT-registered must charge VAT on its sales and can reclaim VAT on purchases.
How to Calculate VAT
Here are the exact formulas used for UK VAT calculations.
Add VAT (Net → Gross)
Gross = Net × (1 + VAT Rate)
Remove VAT (Gross → Net)
Net = Gross ÷ (1 + VAT Rate)
Example (20% VAT):
- £100 + 20% VAT = £120
- £120 minus VAT = £100
UK VAT Rates
- 20% (Standard Rate) — Most goods & services in the UK
- 5% (Reduced Rate) — Energy bills, children’s car seats, home energy-saving materials
- 0% (Zero Rate) — Food, books, newspapers, children’s clothing
- Exempt — Rent, insurance, postage stamps
Frequently Asked Questions
Multiply the net amount by 1.20. Example: £100 × 1.20 = £120.
Divide the gross amount by 1.20. Example: £120 ÷ 1.20 = £100.
No. The UK uses 20% (standard), 5% (reduced), 0% (zero-rated),
and exempt items.