VAT Calculator — Calculate VAT on Any Amount
Calculate VAT inclusive and exclusive prices. Add VAT to a net price or extract VAT from a gross price for any VAT rate worldwide.
Value Added Tax is applied in most countries worldwide with rates ranging from 5% (UAE Singapore) to 27% (Hungary). The UK standard VAT rate is 20% with reduced rates of 5% for some goods and 0% for essentials. Understanding VAT calculations is essential for businesses invoicing international trade and consumers comparing pre and post-tax prices.
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VAT Calculator (20%)
Key Information
| Parameter | Details |
|---|---|
| UK Standard VAT | 20% |
| UK Reduced Rate | 5% (energy and some goods) |
| EU Average VAT | 20% - 27% |
| Zero-Rated Goods | Food basic essentials children clothing |
Frequently Asked Questions
How to calculate VAT on a price?
To add VAT: multiply the net price by (1 + VAT rate). £100 + 20% VAT = £100 x 1.20 = £120. To extract VAT from a gross price: divide by (1 + VAT rate). £120 including VAT = £120 / 1.20 = £100 net with £20 VAT. To find just the VAT amount: gross price x (VAT rate / (100 + VAT rate)). £120 x (20/120) = £20 VAT.
What is zero-rated vs exempt for VAT?
Zero-rated items (food children clothing books) have a 0% VAT rate but the seller can still reclaim VAT on their business costs. Exempt items (financial services education healthcare) have no VAT but the seller cannot reclaim input VAT. For consumers both mean no VAT is charged. For businesses zero-rated is better than exempt because input VAT recovery is allowed.
Do I need to register for VAT?
In the UK you must register for VAT if your taxable turnover exceeds £90000 in any 12-month period. You can voluntarily register below this threshold which allows you to reclaim VAT on business purchases. Registration makes sense if most of your customers are VAT-registered businesses (they reclaim the VAT anyway) but not if selling to consumers (your prices increase 20%).
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Last updated: March 2026