VAT Calculator
Add or remove VAT from any price. Supports standard, reduced, and custom rates.
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Frequently Asked Questions
How UK VAT Works
Value Added Tax (VAT) is a consumption tax added to most goods and services sold in the UK. The standard rate is 20%, but some items attract a reduced rate of 5% and others are zero-rated (0%).
Adding VAT
To add 20% VAT: multiply the net price by 1.20. For example, a product costs £100 net: £100 × 1.20 = £120 including VAT. The VAT portion is £20.
Removing VAT
To remove 20% VAT from a gross price: divide by 1.20. For example, an invoice shows £360 including VAT: £360 ÷ 1.20 = £300 net. The VAT portion is £60. A common mistake is to calculate 20% of £360 (which gives £72) — this is wrong because 20% was added to the net figure, not the gross.
UK VAT Rates
Standard rate (20%): Most goods and services including electronics, clothing, restaurant meals, professional services, and general retail.
Reduced rate (5%): Domestic energy (gas and electricity), children's car seats, and some home renovation work.
Zero rate (0%): Most food and drink, children's clothing, books, newspapers, and public transport.
Exempt: Insurance, education, health services, and financial services. These aren't zero-rated — the distinction is that zero-rated businesses can still reclaim VAT on their costs, while exempt businesses cannot.
Related Calculators
The discount calculator works out sale prices. The percentage calculator handles any percentage calculation. Use the salary calculator to see your income after tax.
KwikSum's VAT calculator instantly adds or removes VAT at any rate. Select 20% (standard), 5% (reduced), or enter any custom rate. Useful for invoicing, shopping, and checking whether a quoted price is VAT-inclusive or exclusive.