Can this article tell me whether to charge VAT?

No. It explains the maths only. VAT treatment can depend on registration status, the goods or services supplied and HMRC rules.

How to Add or Remove VAT from a Price | Calculatorz

Q: How do I add 20% VAT?

Multiply the net price by 1.20. For example, £100 multiplied by 1.20 equals £120.

Q: How do I remove 20% VAT?

Divide the VAT-inclusive price by 1.20. For example, £120 divided by 1.20 equals £100.

Q: What are the main UK VAT rates?

The main UK VAT rates are 20% standard, 5% reduced and 0% zero rate. Some goods and services are exempt or outside the VAT system.

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.

The key 20% VAT rule

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.

Use the VAT calculator

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 × 1.20

Example: 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 ÷ 1.20

Example: if a VAT-inclusive price is £120 at 20%, the net price is £100 and the VAT amount is £20.

Common mistake

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.

How to add or remove VAT from a price