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VAT calculator: how it works
Multiply the net price by 1.2. £1,000 × 1.2 = £1,200, of which £200 is VAT.
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VAT formulas with worked examples
Adding VAT: VAT = net × rate ÷ 100; gross = net + VAT. Removing VAT: net = gross × 100 ÷ (100 + rate); VAT = gross − net.
A common mistake is taking 20% off a gross price. 20% of £1,200 is £240, but the VAT inside £1,200 is only £200, one sixth of it.
| Net | Rate | VAT | Gross |
|---|---|---|---|
| £100.00 | 20% | £20.00 | £120.00 |
| £1,000.00 | 20% | £200.00 | £1,200.00 |
| £250.00 | 5% | £12.50 | £262.50 |
| £480.00 | 0% | £0.00 | £480.00 |
How to use the VAT calculator
- Choose Add VAT for a net price, or Remove VAT for a gross price.
- Enter the amount in pounds.
- Pick 20%, 5%, 0% or enter a custom rate.
- Read the net amount, the VAT and the gross amount.
VAT rates in the UK and nearby countries
For invoices to EU customers the place of supply rules decide whose VAT applies; business-to-business services are often reverse-charged. Use the custom rate for another country's rate. Rates as of October 2026; check the tax authority before relying on them.
| Country | Standard rate | Main reduced rates |
|---|---|---|
| United Kingdom | 20% | 5%, 0% |
| Germany | 19% | 7% |
| France | 20% | 10%, 5.5% |
| Netherlands | 21% | 9% |
| Ireland | 23% | 13.5%, 9% |
| Spain | 21% | 10%, 4% |
| Italy | 22% | 10%, 5%, 4% |
What a VAT invoice must show
- Your VAT registration number
- A unique invoice number and the invoice date
- The time of supply (tax point) if different from the invoice date
- Your name and address and the customer's
- A description of each item, the quantity, the unit price and the VAT rate
- The total net amount, the total VAT and the gross total, in pounds
Questions people ask
How do I add 20% VAT to a price?
Multiply the net price by 1.2. £1,000 × 1.2 = £1,200, of which £200 is VAT.
How do I remove 20% VAT from a price?
Divide the gross price by 1.2. £1,200 ÷ 1.2 = £1,000 net, and the VAT is £200. Equivalently, the VAT is one sixth of the gross price (the VAT fraction).
What are the UK VAT rates?
The standard rate is 20%. The reduced rate of 5% covers things like domestic energy and children's car seats. The zero rate covers most food, children's clothes, books and newspapers. Some supplies are exempt, which is different from zero-rated.
What is the VAT fraction?
The share of a VAT-inclusive price that is VAT: rate ÷ (100 + rate). At 20% it is 20/120 = 1/6; at 5% it is 5/105 = 1/21.
When do I have to register for VAT?
In the UK you must register when your VAT-taxable turnover goes over £90,000 in a rolling 12 months, or you expect it to in the next 30 days. You can register voluntarily below that.