FREE VAT CALCULATION TOOL
Add VAT to a net price or remove VAT from a VAT-inclusive total using the current UK standard, reduced or zero rate.
FREE INSTANT CALCULATION
Add or remove UK VAT
Your figures stay in your browser and are not sent to Real Key Accountancy.
Enter the net amount when adding VAT, or the VAT-inclusive gross amount when removing VAT.
Current UK VAT rates
| VAT rate | Typical application |
|---|---|
| 20% standard rate | Most taxable goods and services |
| 5% reduced rate | Certain qualifying goods and services |
| 0% zero rate | Specific zero-rated taxable supplies |
The correct rate depends on exactly what you supply and, in some cases, who receives it or how it is used. Do not assume a supply qualifies for 5% or 0% without checking the relevant VAT notice.
How to add VAT to a net price
Multiply the net price by the VAT rate to find the VAT amount, then add it to the net price. At the standard 20% rate, a £1,000 net invoice contains £200 VAT and has a £1,200 gross total.
How to remove VAT from a gross price
Do not simply subtract 20% from a VAT-inclusive price. Divide the gross total by 1.20 to find the net amount. The difference is VAT. For example, £1,200 divided by 1.20 gives £1,000 net and £200 VAT.
At 20%, the VAT fraction is 1/6 of the gross total. At 5%, the VAT fraction is 1/21.
Zero-rated, exempt and outside the scope are different
A zero-rated sale is still a taxable supply, but VAT is charged at 0%. Exempt supplies are not taxable supplies, while outside-the-scope transactions fall outside the UK VAT system. These distinctions affect registration turnover, VAT recovery and return reporting.
When a business must register for VAT
A UK-established business generally needs to register when taxable turnover for the previous rolling 12 months exceeds £90,000 or when it expects taxable turnover to exceed £90,000 in the next 30 days alone. Use our VAT Registration Threshold Checker for an initial indication.
VAT records to keep
- Sales and purchase invoices
- Net, VAT and gross values
- VAT rate and tax-point information
- Credit notes and adjustments
- Import, export and reverse-charge records where relevant
- Digital records required under Making Tax Digital
A calculator can split a figure, but it cannot determine whether VAT should be charged, reclaimed or reported in a particular VAT Return box.
How Real Key Accountancy can help
- Set up VAT-ready digital bookkeeping
- Reconcile sales, purchases and bank records
- Support VAT registration administration
- Prepare VAT Return records where engagement and authorisation allow
- Keep Making Tax Digital records organised
Explore our VAT return services in Wolverhampton, use the MTD Start Date Checker, or contact Real Key Accountancy.
Official VAT guidance
The rates were checked in August 2026 against HMRC VAT rates and HMRC guidance on charging and recording VAT. Always review current guidance before issuing an invoice.
Frequently asked questions
How much VAT is included in £120 at 20%?
The net amount is £100 and the VAT is £20.
Can I subtract 20% to remove VAT?
No. Divide the gross amount by 1.20, or apply the 1/6 VAT fraction to the gross amount.
Does 0% VAT mean the supply is exempt?
No. Zero-rated supplies remain taxable supplies, while exempt supplies are treated differently.