VAT Calculator — Add or Remove VAT Instantly
Add VAT to a net price, remove VAT from a gross price, or calculate the VAT amount on any figure. Supports UK VAT rates (20% and 5%), Australia GST (10%), New Zealand (15%) and any custom rate worldwide. Free, instant, no sign-up required.
Enter any rate — works for all countries worldwide
How to Add VAT to a Price
Adding VAT (Value Added Tax) to a net price is straightforward — multiply the net price by the VAT rate expressed as a decimal and add it to the original price. The UK standard VAT rate is 20%, which means you multiply by 1.20 to get the VAT-inclusive total.
VAT amount: £100 × 0.20 = £20.00
Gross price (inc. VAT): £100 + £20 = £120.00
The VAT calculator above handles this instantly for any price and any rate worldwide — just enter the net price, select your VAT rate and click Calculate.
How to Remove VAT from a Price (Reverse VAT)
Removing VAT from a gross price — often called reverse VAT or ex-VAT calculation — is slightly less obvious. You cannot simply subtract 20% from the total because the percentage was applied to the smaller net price, not the gross. The correct formula divides by (1 + rate).
Net price: £120 ÷ 1.20 = £100.00
VAT amount: £120 − £100 = £20.00
Common mistake: £120 × 20% = £24 ❌ — this gives the wrong answer
UK VAT Rates Explained
The UK has three VAT rates that apply to different categories of goods and services:
| VAT Rate | Rate | Examples |
|---|---|---|
| Standard Rate | 20% | Most goods and services, electronics, clothing, alcohol |
| Reduced Rate | 5% | Home energy, children's car seats, mobility aids, some renovations |
| Zero Rate | 0% | Most food, children's clothing, books, newspapers, public transport |
| Exempt | N/A | Financial services, insurance, education, healthcare |
VAT Rates Around the World
VAT (or its equivalent — GST in Australia, New Zealand and Canada) varies significantly by country. Here are the standard rates for major economies:
| Country | Tax Name | Standard Rate | Reduced Rate |
|---|---|---|---|
| 🇬🇧 United Kingdom | VAT | 20% | 5% |
| 🇪🇺 European Union | VAT | 17–27% (varies) | Varies |
| 🇦🇺 Australia | GST | 10% | 0% (food etc.) |
| 🇳🇿 New Zealand | GST | 15% | None |
| 🇨🇦 Canada | GST/HST | 5–15% (by province) | Varies |
| 🇮🇳 India | GST | 18% | 5%, 12% |
| 🇿🇦 South Africa | VAT | 15% | 0% |
| 🇺🇸 United States | Sales Tax | 0–10.25% (by state) | Varies |
The VAT calculator above accepts any custom rate — simply enter the rate for your country in the custom rate field and it will calculate accurately regardless of where you are.
When Do You Need to Register for VAT?
In the UK, businesses must register for VAT when their taxable turnover exceeds the VAT registration threshold in any rolling 12-month period. Once registered, businesses must charge VAT on taxable sales, submit VAT returns to HMRC, and can reclaim VAT paid on eligible business purchases.
- Compulsory registration: Required when UK taxable turnover exceeds the current threshold in any 12-month period. Check the current threshold on the HMRC VAT registration page.
- Voluntary registration: Any business below the threshold can register voluntarily — useful if you sell to VAT-registered businesses who can reclaim the VAT, or if you want to reclaim VAT on business purchases.
- VAT returns: Registered businesses must submit VAT returns (usually quarterly) showing VAT charged and VAT paid, and pay the difference to HMRC.
- Making Tax Digital: Most VAT-registered businesses must use HMRC-approved software to keep digital VAT records and submit returns under Making Tax Digital (MTD).
VAT Worked Examples
VAT at 20%: £250 × 0.20 = £50.00
Total to customer: £300.00
Net price: £84 ÷ 1.20 = £70.00
VAT content: £84 − £70 = £14.00
VAT at 5%: £180 × 0.05 = £9.00
Total: £189.00
What the VAT Calculator Can Do
FAQs
How do I add VAT to a price?
Multiply the net price by (1 + VAT rate ÷ 100). For UK standard VAT of 20%, multiply the net price by 1.20. For example, a net price of £100 becomes £120 including VAT.
How do I remove VAT from a price?
Divide the gross price by (1 + VAT rate ÷ 100). For 20% VAT, divide by 1.20. For example, £120 including VAT divided by 1.20 gives a net price of £100. Do not simply subtract 20% — this gives the wrong answer.
What is the UK VAT rate?
The UK has two main VAT rates. The standard rate is 20% and applies to most goods and services. The reduced rate is 5% and applies to items like home energy and children’s car seats. Some goods such as food and children’s clothing are zero-rated at 0%.
What is the difference between zero-rated and VAT exempt?
Zero-rated goods are subject to VAT but at 0% — businesses can still reclaim VAT on related costs. VAT-exempt goods are outside the VAT system entirely — businesses cannot reclaim VAT on costs related to exempt sales.
What is the VAT rate in Australia?
Australia uses GST (Goods and Services Tax) instead of VAT. The standard GST rate is 10% and applies to most goods and services. Basic food, some medical supplies and some educational materials are GST-free.
When do I need to register for VAT?
In the UK, you must register for VAT when your taxable turnover exceeds the current VAT registration threshold in any rolling 12-month period. You can also register voluntarily below the threshold. Check the current threshold on the HMRC website as it is reviewed periodically.
Is this VAT calculator free to use?
Yes — completely free, no sign-up required. Enter your price and rate above for an instant result.
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