Adding 20% VAT to £100.00 gives a gross price of £120.00.
Net vs VAT
How the gross figure splits between net and tax.
How the VAT calculation works
The standard UK VAT rate is 20%, with a reduced rate of 5% and a 0% zero rate. Other countries use different VAT/GST rates — set your own with the rate field. To add or remove VAT:
Add VAT: Gross = Net × (1 + rate)
Remove VAT: Net = Gross ÷ (1 + rate)
VAT amount = Gross − Net
A common mistake is removing VAT by taking the rate off the gross figure — that's wrong. On a £120 gross figure the VAT at 20% is £20, not £24, because the 20% was applied to the £100 net, not the £120 total.
Why it matters
If your business is VAT-registered, the VAT you charge isn't your money — you collect it for the tax authority and pay it over. Getting net-versus-gross right keeps your pricing, invoices and returns accurate.
Frequently asked questions
What is the current UK VAT rate?
The standard rate is 20%. A reduced rate of 5% applies to some goods and services (such as domestic fuel and power), and a 0% zero rate applies to items like most food, books and children's clothing.
How do I remove VAT from a total?
Divide the gross (VAT-inclusive) figure by 1 plus the rate — 1.20 for 20% — to get the net amount, then subtract the net from the gross to find the VAT. Don't just take the rate off the total; that overstates the VAT.
Does this work for other countries?
Yes. The maths is the same for any VAT or GST rate. Pick your currency at the top of the page and type your local rate into the rate field — for example 19%, 21% or 10%.
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These calculators are for general guidance only and use the figures you enter. They are not financial, accounting or tax advice. Always check important decisions with a qualified professional.