How to use the VAT calculator
- Amount — the net price when adding VAT, or the VAT-inclusive price when removing it.
- Calculation — Add VAT turns net into gross; Remove VAT works backwards from a receipt or consumer price.
- VAT rate — the UK standard (20%) or reduced (5%) rate, a European or other standard rate, or a custom percentage for reduced rates and other countries.
The headline is the figure you asked for, then the VAT itself and the other price; the rows give the rate and its VAT fraction.
The formulas
With the rate r as a decimal (20% = 0.20):
- Add VAT: gross = net × (1 + r); VAT = net × r.
- Remove VAT: net = gross ÷ (1 + r); VAT = gross − net.
The second one is where mistakes happen. Taking 20% off a gross price does not give the net: £120 × 0.8 = £96, but the real net is £120 ÷ 1.2 = £100. The 20% was charged on the smaller net figure, so it is a smaller share of the gross — one sixth, not one fifth. Subtracting the percentage understates the net by £4 in every £120, and the error grows with the rate.
VAT fractions
Because VAT is a fixed share of the gross price, you can also multiply the gross by the VAT fraction r ÷ (1 + r). HMRC publishes 1/6 for 20% and 1/21 for 5%; other common rates:
| Rate | VAT fraction | VAT as % of gross | VAT in a 120.00 gross price |
|---|---|---|---|
| 5% | 1/21 | 4.76% | 5.71 |
| 8.1% | 81/1081 | 7.49% | 8.99 |
| 15% | 3/23 | 13.04% | 15.65 |
| 19% | 19/119 | 15.97% | 19.16 |
| 20% | 1/6 | 16.67% | 20 |
| 21% | 21/121 | 17.36% | 20.83 |
| 23% | 23/123 | 18.7% | 22.44 |
| 25% | 1/5 | 20% | 24 |
| 25.5% | 51/251 | 20.32% | 24.38 |
Worked example: an invoice
A consultant bills 8 hours at £75 to a UK client: net £600, VAT at 20% = £120, invoice total £720. A VAT-registered client reclaims the £120 as input tax, so the service costs them £600; a private customer pays £720. In reverse, a £720 receipt at 20% contains £720 × 1/6 = £120 of VAT and a £600 net price — the figure a registered business books in its accounts.
UK VAT rates
- Standard, 20% — most goods and services: electronics, adult clothing, restaurant meals, consultancy, software.
- Reduced, 5% — domestic gas and electricity, children’s car seats, some energy-saving materials, mobility aids for older people.
- Zero, 0% — most food, books and newspapers, children’s clothes, prescription medicines, public transport. Zero-rated sales still count towards the registration threshold and the seller reclaims input VAT.
- Exempt — insurance, finance, education, most health care, postage stamps, residential letting. No VAT is charged and none can be reclaimed on related costs.
Registration is compulsory once VAT-taxable turnover in any rolling 12 months passes £90,000 (set in April 2024 and unchanged for 2026) or will do so in the next 30 days; deregistration is possible below £88,000. Voluntary registration lets a smaller business reclaim VAT on costs, worthwhile when its customers are registered too.
Standard rates in Europe and beyond (2026)
Every country also has reduced rates for particular goods, and rates move — Finland went to 25.5% in 2024, Estonia to 24% in 2025 — so confirm the current rate with the tax authority or your accountant before invoicing.
| Country | Standard rate |
|---|---|
| Ireland | 23% |
| Germany | 19% |
| France | 20% |
| Spain | 21% |
| Italy | 22% |
| Netherlands | 21% |
| Belgium | 21% |
| Austria | 20% |
| Portugal | 23% |
| Poland | 23% |
| Sweden | 25% |
| Denmark | 25% |
| Finland | 25.5% |
| Norway | 25% |
| Switzerland | 8.1% |
| South Africa | 15% |
| United Arab Emirates | 5% |
| Saudi Arabia | 15% |
EU law sets a minimum standard rate of 15%; Hungary’s 27% is the highest and Luxembourg’s 17% the lowest. The United States has no VAT — sales tax is added at the till, see the sales tax calculator. For plain percent-of and percent-off sums use the percentage calculator; to price goods from cost, the markup calculator.
Frequently asked questions
How do I take 20% VAT off a price?
Divide the gross price by 1.2, or multiply it by the VAT fraction 1/6 to get the VAT alone: £120 ÷ 1.2 = £100 net, £120 × 1/6 = £20 VAT. Subtracting 20% of the gross is wrong because the tax was charged on the smaller net figure.
What is the VAT fraction?
The share of a gross price that is VAT: rate ÷ (100 + rate). At 20% it is 20/120 = 1/6, at 5% it is 1/21, at 23% it is 23/123. Multiply a VAT-inclusive price by the fraction to find the VAT it contains.
What is the UK VAT registration threshold?
A business must register once its VAT-taxable turnover in any 12-month period exceeds £90,000, or if it expects to in the next 30 days. The threshold has been £90,000 since 1 April 2024 and still applies in 2026; registering voluntarily below it is allowed.
Is zero-rated the same as exempt?
No. Zero-rated sales (most food, children’s clothes, books) are taxable at 0%: they count towards the threshold and the seller can reclaim VAT on costs. Exempt sales (insurance, education, most health care) are outside VAT, and VAT on costs linked to them cannot be reclaimed.
Which rate applies to a customer in another EU country?
For consumers, usually the rate of the customer’s country once cross-border sales pass the EU-wide €10,000 threshold, reported through the One Stop Shop. For VAT-registered business customers the reverse charge normally applies and you invoice without VAT. Confirm the rules for what you sell with a tax adviser.
Last updated: October 9, 2026