Add or remove VAT with UK, EU and global rates
Add VAT: Gross = Net × (1 + rate/100). Example: £100 + 20% VAT = £120.
Remove VAT: Net = Gross ÷ (1 + rate/100). The common shortcut "divide by 6 for 20% VAT" works because 20/120 = 1/6 — so for a £120 gross price, the VAT portion is £120 ÷ 6 = £20.
Reverse calculation is not subtracting 20% of the gross price — that's a common mistake that gives the wrong net amount.
| Rate | Applies to |
|---|---|
| 20% Standard | Most goods and services |
| 5% Reduced | Domestic fuel, children's car seats, mobility aids for over-60s |
| 0% Zero-rated | Most food, books, newspapers, children's clothing, public transport |
| Exempt | Insurance, postage stamps, health services, education |
VAT registration threshold (2026): £90,000 taxable turnover in any rolling 12-month period. This tool is informational — for a VAT return, cross-check with HMRC guidance.