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Add or remove UK VAT at standard (20%), reduced (5%), or zero rate. Instant gross and net price breakdown.
UK VAT rates (2024): - **Standard rate: 20%**, most goods and services - **Reduced rate: 5%**, home energy, children's car seats, sanitary products - **Zero rate: 0%**, food, children's clothing, books, public transport **Adding VAT:** Gross = Net × (1 + rate). Example: £1,000 + 20% VAT = £1,200 gross. **Removing VAT (reverse calculation):** Net = Gross ÷ (1 + rate). Example: £1,200 gross ÷ 1.2 = £1,000 net, £200 VAT. Note: if you are VAT-registered in the UK, you must charge VAT on taxable supplies and can reclaim VAT on business purchases.
The standard rate is 20%. The reduced rate is 5% (energy, children's car seats, women's hygiene products). Zero rate (0%) applies to most food, books, children's clothing, and domestic public transport. The £85,000 VAT registration threshold applies to annual taxable turnover.
Divide by (1 + rate). For 20% VAT: Net = Gross ÷ 1.20. VAT amount = Gross − Net. Example: £240 VAT-inclusive ÷ 1.20 = £200 net, £40 VAT. The 'Remove VAT' option in this calculator does this automatically.
You must register for VAT when your taxable turnover exceeds £85,000 in any 12-month period (2024 threshold). Voluntary registration is possible below this threshold, which allows you to reclaim input VAT on purchases. This is beneficial if your customers are VAT-registered businesses.
Have more questions? These calculators provide estimates for educational purposes only. For personalized financial advice, consult with a qualified financial professional. See our disclaimer for more information.
{
"amount": 1000,
"vat_rate": "20",
"direction": "add"
}{
"amount": 1200,
"vat_rate": "20",
"direction": "remove"
}