VATCalculate VAT in United Kingdom
Work out VAT in the United Kingdom in one step: enter a net or gross price in GBP and get the tax amount and the total at 20%.
United Kingdom · VAT
VAT rates in the United Kingdom
The standard VAT rate in the United Kingdom is 20%. Reduced rates: 5%. This is close to the average for Europe (20%). Worldwide ranking by standard rate: #27 of 159 countries.
The 5% reduced rate covers items such as domestic fuel and power, children's car seats and some energy-saving materials. Many basics, including most food, books and children's clothing, are zero-rated (0%), which is different from being exempt.
Official source: gov.uk. Rates checked: October 2026.
How to calculate VAT in the United Kingdom
Adding VAT to a net price
VAT = net × 20 / 100
gross = net × 1.2
Removing VAT from a gross price
net = gross / 1.2
VAT = gross − net
A common mistake is to take 20% off the gross price. That gives the wrong figure: the VAT inside a gross price is only 16.67% of it.
VAT examples in GBP
Common amounts with 20% VAT added:
| Net | VAT 20% | Gross |
|---|---|---|
| 10.00 GBP | 2.00 GBP | 12.00 GBP |
| 50.00 GBP | 10.00 GBP | 60.00 GBP |
| 100.00 GBP | 20.00 GBP | 120.00 GBP |
| 500.00 GBP | 100.00 GBP | 600.00 GBP |
| 1,000.00 GBP | 200.00 GBP | 1,200.00 GBP |
| 10,000.00 GBP | 2,000.00 GBP | 12,000.00 GBP |
Removing VAT from gross prices
| Gross | Net | VAT 20% |
|---|---|---|
| 60.00 GBP | 50.00 GBP | 10.00 GBP |
| 120.00 GBP | 100.00 GBP | 20.00 GBP |
| 600.00 GBP | 500.00 GBP | 100.00 GBP |
| 1,200.00 GBP | 1,000.00 GBP | 200.00 GBP |
Questions about VAT in the United Kingdom
What is the VAT rate in the United Kingdom?
The standard VAT rate in the United Kingdom is 20%. Reduced rates: 5%.
How do I add 20% VAT to a price?
Multiply the net price by 1.2. For example 500.00 GBP × 1.2 = 600.00 GBP.
How do I remove VAT from a gross price?
Divide the gross price by 1.2. For example 600.00 GBP ÷ 1.2 = 500.00 GBP net; the difference is the VAT.
What share of a gross price is VAT?
At 20%, VAT makes up 16.67% of the gross price (20 ÷ 120).