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VAT calculator

Add VAT to a price, or find the VAT inside a price that already includes it. UK standard 20%, reduced 5% or zero rate, rounded to the penny, with the working shown.

20%, 5% or 0%Shows the workingNo sign-up
Price excluding VAT£100.00
VAT (20%)£20.00
Price including VAT£120.00

Calculated on your device, rounded to the nearest penny, half up.

How to add VAT to a price

At the standard rate, VAT is 20% of the price before VAT: multiply by 1.2. At the reduced rate, it's 5%: multiply by 1.05.

Example: a job priced at £450 before VAT. VAT is £450 × 20% = £90, so the price including VAT is £540.

How to work out the VAT in a VAT-inclusive price

A price including 20% VAT is 120% of the price before VAT, so the VAT is one sixth of it. Divide by 6. At 5%, the VAT is one twenty-first: divide by 21.

Example: £540 including VAT contains £540 ÷ 6 = £90 of VAT, so the price before VAT is £450.

Common mistake: taking 20% of a VAT-inclusive price. 20% of £540 is £108, which overstates the VAT by £18. Divide by 6 instead.

Quick reference at 20%

AmountVAT if you add itTotal with VATVAT inside itAmount without VAT
£50.00£10.00£60.00£8.33£41.67
£100.00£20.00£120.00£16.67£83.33
£250.00£50.00£300.00£41.67£208.33
£500.00£100.00£600.00£83.33£416.67
£1,000.00£200.00£1,200.00£166.67£833.33
£2,750.00£550.00£3,300.00£458.33£2,291.67

Zero-rated, exempt and outside the scope

  • Zero-rated goods and services are taxable at 0%: GOV.UK's examples include books and children's clothing, and exported goods (subject to conditions).
  • Exempt goods and services have no VAT charged, such as financial services and betting and gaming.
  • Outside the scope of UK VAT, such as voluntary donations to charity, also have no VAT charged.

On one invoice, items can carry different rates. Show the rate for each item and the VAT total.

What a full VAT invoice must show

HMRC's VAT Notice 700 (section 16) lists what a VAT-registered business must include on a full VAT invoice:

  • a unique, sequential invoice number, the time of supply (tax point) and the issue date if different;
  • your name, address and VAT registration number, and your customer's name and address;
  • a description of the goods or services and, for each item, the quantity, the VAT rate and the amount before VAT;
  • the total before VAT, any cash discount rate, and the total VAT in sterling.

For supplies of £250 or less (including VAT), and if your customer agrees, a simplified VAT invoice is allowed. Check section 16 for the full rules, including the extra requirements for Northern Ireland and EU customers.

Who charges VAT

Only VAT-registered businesses charge VAT. You must register when your VAT taxable turnover for the last 12 months goes over £90,000, and you can register voluntarily below it. If you're not registered, don't add VAT and don't call your invoice a VAT invoice.

Questions

How do I add VAT to a price?

Multiply the price before VAT by 1.2 at the standard rate. £100 plus VAT is £100 + £20 = £120. At the 5% reduced rate, multiply by 1.05.

How do I take VAT off a price that includes it?

At 20%, the VAT is one sixth of the VAT-inclusive price: £120 includes £20 of VAT. At 5%, it's one twenty-first. Don't take 20% of the total: 20% of £120 is £24, which overstates the VAT.

What are the UK VAT rates?

GOV.UK lists a standard rate of 20%, a reduced rate of 5% and a zero rate of 0%. Some goods and services are exempt, and some are outside the scope of UK VAT.

What's the difference between zero-rated and exempt?

Zero-rated goods and services are VAT-taxable at 0%. Exempt goods and services have no VAT charged at all. Outside-the-scope items aren't part of the UK VAT system. HMRC's guidance lists which is which.

When do I have to register for VAT?

GOV.UK says you must register if your total VAT taxable turnover for the last 12 months goes over £90,000 (the VAT threshold). Only VAT-registered businesses charge VAT and issue VAT invoices.

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Sources

Last reviewed 28 October 2026. General information, not tax or legal advice. If you're unsure how a rule applies to your business, ask HMRC or a qualified adviser.

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