VAT Calculator
HotAdd or remove UK VAT from any price in seconds.
How it works
Adding VAT to a net (pre-VAT) price is straightforward: multiply the net price by the VAT rate and add it on. Removing VAT from a gross (VAT-inclusive) price is where people commonly go wrong — you can't just subtract the same percentage, because that percentage was originally calculated on the smaller net figure, not the gross one. Instead, the gross price needs to be divided by (1 + the VAT rate as a decimal) to find the net price, with the VAT amount being the difference.
UK context
The UK uses a standard rate that applies to most goods and services, a reduced rate for specific items, and a zero rate for certain essentials — zero-rated items are still technically VAT-able (just at 0%), which differs from exempt items that VAT never applies to at all. Businesses only need to register for VAT once their VAT-taxable turnover crosses the current registration threshold in any rolling 12-month period — see our plain-English VAT guide for the full breakdown.
Tips
- Always check whether a quoted price is described as "plus VAT" (net) or already "inc. VAT" (gross) before doing the maths — using the wrong calculation direction is the single most common VAT mistake.
- Keep VAT records and invoices organised by rate (standard, reduced, zero) if you're a VAT-registered business — HMRC requires this level of detail for VAT returns.
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by the VAT rate (as a decimal) to get the VAT amount, then add that to the net price to get the gross, VAT-inclusive price.
How do I remove VAT from a price to find the net amount?
Divide the gross price by 1 plus the VAT rate as a decimal (for example, by 1.20 at the standard rate) to get the net price — don't simply subtract the percentage from the gross figure, as that gives the wrong answer.
What's the difference between zero-rated and VAT-exempt?
Zero-rated goods and services are still technically within the VAT system, just charged at 0% — this matters for record-keeping and reclaiming input VAT. Exempt items fall outside the VAT system entirely, and you generally can't reclaim VAT on related costs.
Do I need to register for VAT?
Registration is compulsory once your VAT-taxable turnover exceeds the current threshold in any rolling 12-month period; many businesses also register voluntarily below that threshold. Check current thresholds on gov.uk before making a registration decision.
How often do UK VAT rates change?
VAT rates and thresholds are set by the government and reviewed periodically, most often announced at the Budget. Always check gov.uk for the current rates rather than relying on a fixed figure, since they can and do change.
A quick note
Figures and thresholds referenced above (tax bands, VAT rates, redundancy caps and similar) are set by the government and reviewed periodically — this page explains how the calculation works, not necessarily today's exact numbers. Always check the official sources below before making a financial decision, and see our full disclaimer.