VAT Calculator

VAT Explained

Adding VAT

Gross price = Net price × (1 + VAT rate). UK example: £100 net + 20% VAT = £100 × 1.20 = £120 gross. VAT amount = £120 − £100 = £20.

Removing VAT (De-vatting)

Net price = Gross price ÷ (1 + VAT rate). UK example: £120 gross ÷ 1.20 = £100 net. A common mistake: taking 20% off £120 gives £96, not £100. You must divide, not subtract.

UK VAT Rates

Standard rate (20%): most goods and services. Reduced rate (5%): domestic fuel, energy-saving materials, children's car seats, sanitary products. Zero rate (0%): food, books, children's clothing, public transport. Exempt: insurance, finance, education, health services.