VAT Calculator

How to add VAT to a price

Multiply the net price by (1 + VAT rate). At 20%, £100 × 1.20 = £120: £100 net plus £20 VAT. At 5%, £100 × 1.05 = £105.

How to remove VAT from a price

Divide the gross price by (1 + VAT rate) — do not simply take the percentage off. £120 including 20% VAT ÷ 1.20 = £100 net, so the VAT is £20. Taking 20% off £120 would wrongly give £96. A quick check: at 20% the VAT is always 1/6 of the gross price; at 5% it is 1/21.

UK VAT rates

The UK has three VAT rates: the standard rate of 20% applies to most goods and services; the reduced rate of 5% applies to some items such as domestic energy and children's car seats; the zero rate of 0% applies to most food, books and children's clothes. Some goods and services are exempt from VAT altogether. Check GOV.UK for the rate on a specific product.

Other countries

Enter any other rate with the custom option. For example, Ireland's standard rate is 23% and the UAE's is 5%. The US has no VAT; states and cities charge a sales tax instead, which is added at the checkout — you can still use the calculator with your local sales tax rate.

How do I calculate 20% VAT?

Multiply the net amount by 0.20 to get the VAT, or by 1.20 to get the total including VAT. £250 net → £50 VAT → £300 total.

How do I work out the VAT from a price that includes VAT?

Divide the gross price by 6 for 20% VAT (or by 21 for 5% VAT). A £90 price including 20% VAT contains £15 VAT and £75 net.

Why can't I just subtract 20% to remove VAT?

Because the 20% was calculated on the net price, not the gross price. Removing it means dividing by 1.20; subtracting 20% of the gross price gives too low a net figure.

Does the US have VAT?

No. The US uses state and local sales taxes instead of VAT. Enter your sales tax rate as a custom rate to see the tax and the total.