WorthChex › VAT Calculator

Browser-based calculation

Your figures are processed in your browser. WorthChex does not require an account or bank details to use the calculator.

Choose the calculation

Calculate

VAT rate

Amount

UK VAT RATES

How this calculator works

The standard UK VAT rate is 20%. A reduced rate of 5% and a zero rate of 0% also apply to certain goods and services. Some transactions are exempt from VAT and others have special rules.

This calculator does not decide which VAT rate applies to your goods or services; it only calculates the arithmetic once you select a rate.

Source: GOV.UK

Read the full WorthChex methodology →

UNDERSTANDING VAT

VAT is a percentage applied to the net price, but the direction of the calculation matters.

Adding VAT means applying the selected rate to a price before VAT. Removing VAT is different: the gross price already contains the VAT, so the VAT component is found by backing it out of the inclusive amount rather than simply subtracting the headline percentage.

Add VAT

For a £100 net price at 20%, VAT is £20 and the gross price is £120.

Remove VAT

For a £120 VAT-inclusive price at 20%, the VAT portion is £20 and the net price is £100.

Rate matters

Use the VAT rate that actually applies to the goods or services. Some supplies can be zero-rated, reduced-rate or exempt.

GOV.UK publishes the current VAT rates and explains which goods and services can fall under different VAT treatments. GOV.UK VAT rates →

REVIEWED SEPTEMBER 2026

Use the calculator for arithmetic, then verify the tax treatment.

The calculator applies the rate you select; it does not determine whether you or a particular transaction must be VAT registered, nor whether a special VAT treatment applies. For business or tax decisions, check the current HMRC guidance for the transaction.

The direction of the calculation matters.

Adding VAT to a net amount is a simple percentage calculation. Removing VAT from a VAT-inclusive gross price is different because the VAT is already included inside the total. Dividing a gross price by the selected VAT rate will not produce the correct net amount.

Add VAT

Start with a price before VAT. The calculator adds the selected VAT amount and shows the resulting gross price.

Remove VAT

Start with a VAT-inclusive price. The calculator extracts the VAT component so you can see the underlying net amount.

Select the correct rate

20%, 5% and 0% are not interchangeable labels. The correct treatment depends on the goods, services and circumstances.

Example: adding 20% VAT to £1,000 produces £200 of VAT and a £1,200 gross price. Removing 20% VAT from £1,200 returns a £1,000 net price and £200 VAT.

The arithmetic is simple; deciding the VAT treatment may not be.

GOV.UK lists different VAT rules for different goods and services. Some supplies can be zero-rated, reduced-rated or exempt, while special rules can apply in particular situations. This page intentionally asks you to select the rate instead of pretending the calculator can determine your tax treatment from a price alone.

For business use, check the current GOV.UK guidance or your accountant/records when the classification matters. The calculator is best used once the applicable VAT rate is known.

VAT calculator FAQs

How do I remove 20% VAT from a gross price?

Use the “VAT included in a gross price” mode and select 20%. The calculator divides the gross price by 1.20 to derive the net amount and then shows the VAT component.

Is 5% VAT available for everything?

No. The reduced rate applies to specified goods and services. Check the current GOV.UK guidance for the category involved.

What is the zero rate?

A zero-rated supply is still within the VAT system but the applicable rate is 0%. That differs from an exempt supply, so the legal treatment should be checked rather than inferred from the calculator.

Can this calculator decide whether I should charge VAT?

No. It only performs the arithmetic after you choose a rate. VAT registration and charging obligations depend on your circumstances and the current rules.