VAT calculator — add or remove 20% VAT instantly

How do I add VAT to a price?

Multiply the net (ex-VAT) amount by 1.20. For example, £500 net × 1.20 = £600 including VAT. The VAT element is £100. This is the standard rate of 20% that applies to most goods and services in the UK, including the majority of construction and trade work.

How do I remove VAT from a gross price?

Divide the gross (inc-VAT) amount by 1.20 to get the net, or divide by 6 to get just the VAT element. For example, £600 gross ÷ 1.20 = £500 net. The VAT is £600 ÷ 6 = £100. This is useful when a supplier quotes you an inclusive price and you need to know the reclaimable VAT.

What are the other UK VAT rates?

Reduced rate: 5% (domestic fuel, children's car seats, some energy-saving materials). Zero rate: 0% (most food, children's clothing, books, new-build residential construction). Exempt: no VAT charged and no input VAT reclaimable (insurance, education, health). Most trade work for existing buildings is standard-rated at 20%.

When do I need to register for VAT?

You must register if your taxable turnover exceeds £90,000 in any rolling 12-month period (2026/27 threshold). You can register voluntarily below this — useful if your customers are VAT-registered businesses, since you can then reclaim VAT on your purchases. Once registered, charge 20% on invoices, file quarterly returns, and pay HMRC the difference between output VAT (charged) and input VAT (reclaimed).

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