How it works
For £100 net at 20% VAT, the gross amount is £120. To remove 20% VAT from £120 gross, divide by 1.20 to get £100 net and £20 VAT.
VAT treatment depends on the goods or services and current rules. Zero-rated and exempt supplies are not the same; use this tool only for arithmetic, not classification.
Frequently asked questions
Is this calculator intended for the UK?
Yes. The English version uses common UK VAT rates and displays GBP.
How do I reverse-calculate VAT?
Choose “Remove VAT from gross amount”. The tool divides the gross amount by one plus the VAT rate.
Adding and removing VAT correctly
To add 20% VAT to £100 net, multiply by 1.20 to get £120 gross. To remove 20% VAT from £120 gross, divide by 1.20 to get £100 net. Subtracting 20% directly from the gross amount would be incorrect.
The English calculator uses common UK VAT rates. Actual VAT liability and the distinction between zero-rated and exempt supplies depend on applicable rules, which the tool does not determine. You can calculate profit margins separately.
UK VAT compared with US sales tax
This page is designed for UK VAT arithmetic. If you need to add or remove a rate supplied for a US jurisdiction, use the separate US sales tax calculator rather than assuming the UK VAT rules apply. For changes expressed as a percentage without any tax classification, see the percentage change calculator.
Quick UK VAT calculations: add or remove tax
At the UK standard rate of 20%, £75 plus VAT is £90 (£75 × 1.20). If a quoted total already includes VAT, £240 including 20% VAT contains £200 net and £40 VAT (£240 ÷ 1.20). For an inclusive price of £250, the net is approximately £208.33 and the VAT is approximately £41.67 after rounding to pennies.
Should I subtract 20% to remove VAT?
No. Subtracting 20% from £240 gives £192, which is not the net price. Reverse VAT is gross ÷ (1 + rate ÷ 100). This is different from a discount, which is applied to a specified base price.
Which UK VAT rate should I choose?
The UK publishes standard, reduced and zero VAT rates. The correct treatment depends on the goods and services: a zero-rated supply is not the same as an exempt supply. Check the official GOV.UK VAT rates before using an example for a real transaction. This calculator only performs arithmetic; it does not determine tax liability.