VAT calculator
To add 20% VAT, multiply by 1.2. To take it off, divide by 1.2, not take away 20%: £120 including VAT is £100 plus £20 VAT.
Price including VAT
- Before VAT
- £100.00
- VAT
- £20.00
- Including VAT
- £120.00
£100.00 plus 20% VAT of £20.00.
Rounded to the nearest penny. Businesses should follow HMRC’s rules for rounding on invoices.
Adding and removing 20% VAT
| Amount | Plus VAT | VAT added | Amount if VAT is included | VAT in it |
|---|---|---|---|---|
| £10.00 | £12.00 | £2.00 | £8.33 | £1.67 |
| £50.00 | £60.00 | £10.00 | £41.67 | £8.33 |
| £100.00 | £120.00 | £20.00 | £83.33 | £16.67 |
| £250.00 | £300.00 | £50.00 | £208.33 | £41.67 |
| £500.00 | £600.00 | £100.00 | £416.67 | £83.33 |
| £1,000.00 | £1,200.00 | £200.00 | £833.33 | £166.67 |
| £5,000.00 | £6,000.00 | £1,000.00 | £4,166.67 | £833.33 |
UK VAT rates
| Rate | VAT | Examples |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced | 5% | Home energy, children’s car seats, some mobility aids |
| Zero | 0% | Most food, children’s clothes, printed books |
How we calculate this
To add VAT, we multiply the price by 1 plus the rate. To remove VAT from a price that already includes it, we divide by 1 plus the rate.
Taking 20% off a VAT-inclusive price gives the wrong answer, because the VAT was worked out on the lower, pre-VAT price. At 20%, the VAT is one sixth of the total.
Questions people ask
How do I work out VAT at 20%?
Multiply the price before VAT by 0.2 to get the VAT, or by 1.2 to get the price including VAT. £50 plus VAT is £60.
How do I take VAT off a price?
Divide by 1.2 for 20% VAT. £60 including VAT is £50 before VAT, and the VAT is £10. Don’t just take off 20%, which would give £48.
What is the VAT rate in the UK?
The standard rate is 20%. There is a reduced rate of 5% for things like home energy and children’s car seats, and a zero rate for most food, children’s clothes and books.
What does “ex VAT” and “inc VAT” mean?
“Ex VAT” (or “plus VAT”) is the price before VAT is added. “Inc VAT” is the full price you pay, with VAT already included.
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