What are the UK VAT rates?

Standard rate 20%, reduced rate 5%, and 0% for certain goods and services. Some supplies are VAT exempt.

How do I add VAT to a net amount?

Multiply the net by (1 + rate/100). VAT equals gross minus net.

Which rounding does this calculator use?

By default, VAT is rounded to the nearest penny (2 decimals) in line with HMRC practice, with options to change rounding behaviour.

Does the calculator handle reduced and zero rates?

Yes. Use the 5% reduced rate or 0% zero rate presets, or supply any custom rate you need.

Are results suitable for UK invoicing?

Yes. Figures are presented in GBP with HMRC-based formulas. Always confirm your VAT treatment and rate for your specific supply.

UK VAT Calculator

Q: How do I remove VAT from a gross amount?

Divide the gross by (1 + rate/100) to get net. VAT equals gross minus net.

This authoritative UK VAT calculator helps businesses, contractors, and consumers add VAT to net amounts or remove VAT from gross totals. It supports the standard 20% rate, the reduced 5% rate, and custom rates, with HMRC-aligned rounding and fully accessible, mobile-first design.

Calculator

Add VAT Remove VAT

Amount (net)

VAT rate

Rounding

Results

Results will appear here.

Net amount £0.00

VAT £0.00

Gross amount £0.00

Data Source and Methodology

Authoritative Data Source: HMRC — VAT Notice 700: The VAT Guide (Updated 2024-04-01) and GOV.UK VAT rates.
Reference: VAT Notice 700, GOV.UK VAT rates.

All calculations strictly rely on the formulas and rates provided by these sources. All calculations are rigorously based on the formulas and data provided by this source.

Adding VAT uses multiplication by (1 + rate/100).
Removing VAT divides the gross by (1 + rate/100).
Default rounding rounds VAT to the nearest penny (2 decimals).

The Formula Explained

$$ \text{Gross} = \text{Net} \times \left(1 + \frac{r}{100}\right) $$
$$ \text{VAT} = \text{Gross} - \text{Net} $$
$$ \text{Net} = \frac{\text{Gross}}{1 + \frac{r}{100}} $$

Where r is the VAT rate in percent (e.g., r = 20 for 20%).

Glossary of Variables

Amount (net): Price before VAT is applied. Used when adding VAT.
Amount (gross): Price including VAT. Used when removing VAT.
VAT rate r (%): The applicable percentage (e.g., 20, 5, 0, or a custom value).
VAT: The tax amount: VAT = Gross − Net.
Gross: Final price paid, including VAT.
Rounding: Approach used to present currency values (default: VAT rounded to 2 decimals).

Worked Example

How It Works: A Step-by-Step Example

Scenario 1 — Add VAT: Net = £100.00, r = 20.

Compute Gross: Gross = 100 × (1 + 20/100) = 100 × 1.20 = £120.00
Compute VAT: VAT = Gross − Net = 120 − 100 = £20.00

Scenario 2 — Remove VAT: Gross = £120.00, r = 20.

Compute Net: Net = 120 ÷ 1.20 = £100.00
Compute VAT: VAT = 120 − 100 = £20.00

With standard rounding, VAT is rounded to the nearest penny before summing totals where relevant.

Frequently Asked Questions (FAQ)

What VAT rates are used in the UK?

Standard 20%, reduced 5%, and 0% for certain goods/services. Some supplies are exempt (no VAT charged or reclaimed). Always confirm the correct rate on GOV.UK.

How do I add VAT correctly?

Multiply the net amount by (1 + r/100). Example: £100 at 20% → £120 gross; VAT = £20.

How do I remove VAT from a gross amount?

Divide the gross by (1 + r/100) to get net. Example: £120 at 20% → £100 net; VAT = £20.

What rounding method does HMRC expect?

Generally round to the nearest penny (2 decimals). This tool’s default rounds VAT to 2 decimals and then totals accordingly.

Does this tool cover reduced and zero-rated items?

Yes. Use the 5% or 0% presets, or enter a custom rate when needed. For exemptions, VAT is not charged.

Can I use these figures for invoicing?

Yes, but you remain responsible for using the correct VAT rate and treatment for your supply. For complex cases, consult your accountant or HMRC guidance.

Tool developed by Ugo Candido. Content verified by Editorial Review Team.
Last reviewed for accuracy on: 14 September 2025.