Use the How to Add or Remove VAT from A Price
To add VAT, multiply the net price by 1 + VAT rate. To remove VAT from a VAT-inclusive price, divide the gross price by 1 + VAT rate.
At the UK standard rate, adding VAT to £100 gives £120. Removing VAT from £120 gives £100 because £120 ÷ 1.20 = £100. Do not remove VAT by subtracting 20% from the gross price.
Want the VAT worked out instantly?
The VAT calculator can add or remove VAT at 20%, 5%, 0% or a custom rate.
Current UK VAT rates
For everyday UK calculations, the main VAT rates are 20%, 5% and 0%. Some goods and services are exempt or outside the scope of VAT, so the calculator is best used for arithmetic rather than deciding whether VAT should legally apply.
| Rate | Common label | Simple example |
|---|---|---|
| 20% | Standard rate | Many goods and services |
| 5% | Reduced rate | Some qualifying goods and services |
| 0% | Zero rate | Some zero-rated goods and services |
Source note: GOV.UK lists the standard, reduced and zero VAT rates and explains that the correct rate depends on the goods or services supplied.
How to add VAT to a price
When a price is VAT-exclusive, it is the net price before VAT. To add VAT, multiply by one plus the VAT rate.
Add VAT formula:
Gross price = net price × (1 + VAT rate)
At 20% VAT:
Gross price = net price × 1.20Example: if the net price is £100 and the VAT rate is 20%, the VAT is £20 and the VAT-inclusive total is £120.
| Net price | VAT rate | VAT amount | Gross price |
|---|---|---|---|
| £100 | 20% | £20 | £120 |
| £200 | 5% | £10 | £210 |
How to remove VAT from a price
When a price already includes VAT, it is the gross price. To find the price before VAT, divide by one plus the VAT rate.
Remove VAT formula:
Net price = gross price ÷ (1 + VAT rate)
VAT amount = gross price − net price
At 20% VAT:
Net price = gross price ÷ 1.20Example: if a VAT-inclusive price is £120 at 20%, the net price is £100 and the VAT amount is £20.
Subtracting 20% from £120 gives £96, which is wrong for removing VAT. That calculation takes 20% off the gross total. VAT is 20% of the net price, not 20% of the VAT-inclusive total.
Why removing VAT is not minus 20%
The confusion happens because adding VAT and removing VAT use different bases. When you add VAT, the 20% is based on the net price. Once VAT has been added, the gross total is larger, so the VAT part is a smaller share of that gross total.
Net price = £100
VAT at 20% = £20
Gross price = £120
VAT as a share of gross price:
£20 ÷ £120 × 100 = 16.67%That is why a VAT-inclusive £120 price contains £20 VAT, not £24 VAT. Use the percentage calculator if you want to compare the VAT amount as a percentage of the gross total.
Worked VAT examples
Add 20% VAT to £75
£75 × 1.20 = £90. The VAT amount is £15.
Remove 20% VAT from £240
£240 ÷ 1.20 = £200. The VAT amount is £40.
Add 5% VAT to £80
£80 × 1.05 = £84. The VAT amount is £4.
Remove 5% VAT from £84
£84 ÷ 1.05 = £80. The VAT amount is £4.
When to use add VAT vs remove VAT
Use add VAT when you start with the price before VAT and need the customer-facing total. Use remove VAT when you start with a VAT-inclusive receipt total and need to split out the net price and VAT amount.
- Invoice line before VAT → add VAT.
- Receipt total including VAT → remove VAT.
- Comparing a VAT-exclusive supplier quote with a VAT-inclusive price → convert one so both are on the same basis.
- Checking a business expense receipt → remove VAT if VAT is included and the rate is known.
FAQs
How do I add 20% VAT?
Multiply the net price by 1.20. For example, £100 × 1.20 = £120.
How do I remove 20% VAT?
Divide the VAT-inclusive price by 1.20. For example, £120 ÷ 1.20 = £100.
Why is removing VAT not the same as taking off 20%?
Because VAT is calculated on the net price. Once VAT is added, the VAT portion is 16.67% of the gross total at the 20% standard rate.
What are the main UK VAT rates?
The main rates are 20% standard, 5% reduced and 0% zero rate. Some goods and services are exempt or outside the VAT system.
Can this page tell me whether I should charge VAT?
No. This page explains the maths. VAT treatment can depend on your registration status, what is being supplied and specific HMRC rules.