VAT calculator: add or remove VAT
To add 20% VAT, multiply the net price by 1.2. To remove it, divide the VAT-inclusive price by 1.2, so the VAT is one sixth of the total. For the 5% rate, use 1.05. You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12 months, or you expect it to go over £90,000 in the next 30 days alone.
How do I add or remove VAT?
Enter an amount, choose whether it is before or after VAT, and pick the rate. The result updates as you type, and nothing you enter is stored or sent anywhere.
Your result
Enter an amount to see the net, VAT and gross figures.
Every figure is rounded to the nearest penny, with the sum you can use to check it.
Want your VAT handled for you?
We register businesses for VAT, pick the right scheme and file Making Tax Digital returns. See our VAT assistance service.
Are you over the £90,000 VAT registration threshold?
You must register if your taxable turnover for the last 12 months is over £90,000, or you expect more than £90,000 in the next 30 days alone. Enter both figures to check.
Your result
Enter your turnover to see whether you need to register.
You'll see which test applies, your deadline and the date your registration would take effect.
What are the UK VAT rates for 2026/27?
There are three VAT rates, all unchanged for 2026/27 (GOV.UK: VAT rates). VAT rates and thresholds are the same across the whole UK, including Scotland and Northern Ireland. Some things are exempt from VAT altogether, which is not the same as zero-rated.
| Rate | % | Examples |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced | 5% | Some goods and services, such as children's car seats and home energy |
| Zero | 0% | Zero-rated goods and services, such as most food and children's clothes |
| Exempt | No VAT | Postage stamps, and financial and property transactions |
Zero-rated sales are still taxable, so they count towards the £90,000 registration threshold. Exempt and out-of-scope sales don't.
How do I work out VAT?
To add VAT, multiply the net price by 1.2 for 20% or 1.05 for 5%. To remove it, divide the gross price by the same number. The VAT inside a 20% VAT-inclusive price is one sixth of it; inside a 5% price it is one twenty-first.
- £250 plus 20% VAT: £250 × 1.2 = £300, of which £50 is VAT.
- £300 including 20% VAT: £300 ÷ 1.2 = £250 before VAT, and £300 ÷ 6 = £50 of VAT.
- £210 including 5% VAT: £210 ÷ 1.05 = £200 before VAT, with £10 of VAT.
The common mistake is taking 20% off a gross price. 20% of £300 is £60, but the VAT inside £300 is only £50.
How do the two VAT registration tests work?
Register within 30 days of the end of the month in which your taxable turnover for the last 12 months went over £90,000. If you expect to go over £90,000 in the next 30 days alone, register by the end of that 30-day period (GOV.UK: when to register for VAT).
| Test | You must register if | Deadline | Registered from |
|---|---|---|---|
| Last 12 months | Taxable turnover for any rolling 12 months goes over £90,000 | 30 days after the end of the month you went over | The first day of the second month after you went over |
| Next 30 days | You expect over £90,000 in the next 30 days alone | The end of that 30-day period | The date you realised |
GOV.UK's example: if you went over on 15 July, you register by 30 August and are registered from 1 September. Businesses based outside the UK have no threshold. Below £90,000 you can choose to register voluntarily (GOV.UK: register for VAT).
What other VAT thresholds apply in 2026/27?
| Threshold | 2026/27 |
|---|---|
| Registration | Taxable turnover over £90,000 |
| Voluntary deregistration | Taxable turnover below £88,000 |
| Flat Rate Scheme | Join at £150,000 or less (excluding VAT); leave once total income is over £230,000 (including VAT) |
| Cash Accounting Scheme | Join at £1.35 million or less; leave over £1.6 million |
| Annual Accounting Scheme | Join at £1.35 million or less; leave over £1.6 million |
Sources: cancelling VAT registration, VAT Notice 733, cash accounting and annual accounting on GOV.UK. You can't use the Flat Rate Scheme and cash accounting together.
Once registered, you file VAT Returns, usually every 3 months, using Making Tax Digital compatible software. Each return and payment is due 1 calendar month and 7 days after the period ends (GOV.UK: VAT Return deadlines).
Our VAT assistance service registers you, chooses the right scheme and files your returns, and our bookkeeping service keeps the digital records VAT needs. Starting a company? Our guide to setting up a limited company covers planning for VAT.
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Practical tips for a new business, from choosing the right structure to registering for corporation tax and planning for VAT before you have to. Written for 2026/27.
Frequently asked questions
How do I calculate 20% VAT?
Multiply the price before VAT by 0.2 to find the VAT, or by 1.2 to find the price including VAT. For example, £500 plus 20% VAT is £600, of which £100 is VAT. For the 5% reduced rate, multiply by 0.05 or 1.05 instead.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.2 for 20% VAT, or by 1.05 for 5% VAT. The difference is the VAT. For example, £600 including 20% VAT is £500 before VAT, with £100 of VAT. Taking 20% off the gross price gives the wrong answer: 20% of £600 is £120, which is too much.
How much is 20% VAT on £100?
£20, so the price including VAT is £120. If £100 already includes 20% VAT, the price before VAT is £83.33 and the VAT is £16.67, because the VAT inside a VAT-inclusive price is one sixth of it, not one fifth.
What is the VAT fraction?
It is the share of a VAT-inclusive price that is VAT: one sixth at the 20% standard rate and one twenty-first at the 5% reduced rate. Multiply the gross price by the fraction to find the VAT inside it. For example, the VAT in £210 at 5% is £210 divided by 21, which is £10, leaving £200 before VAT.
Written and reviewed by George Nicholson BFP ACA, ICAEW Chartered Accountant. Last reviewed 20 October 2026. This page is general information, not personal advice.
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