What this calculator does
Use this VAT calculator to add VAT to a net price or remove VAT from a price that already includes VAT. It is useful for invoices, quotes, receipts and quick business checks.
Formula used
To add VAT, multiply the net price by one plus the VAT rate. To remove VAT, divide the gross price by one plus the VAT rate. The VAT amount is the difference between the two figures.
How to read the result
The calculation is arithmetic only. Whether an item should use the standard, reduced or zero rate depends on the goods, service and circumstances.
Assumptions
- Uses the UK standard VAT rate of 20% as the default.
- Includes reduced and zero rate options.
- Does not decide which VAT rate applies to a product or service.
Sources and checks
Source links are included so you can check important formulas, thresholds and assumptions.
Frequently asked questions
How do I remove 20% VAT?
Divide the VAT-inclusive price by 1.2 to get the price before VAT. The VAT amount is the original price minus that net figure.