Net £100.00. VAT £20.00. Gross £120.00.
£100.00 plus 20% VAT is £120.00 — £20.00 of that is VAT.
Breakdown
| Net price (excluding VAT) | £100.00 |
| VAT at 20% | +£20.00 |
| Gross price (including VAT) | £120.00 |
To add VAT, multiply the net price by 1.2 (i.e. + 20%). To remove VAT from a gross price, divide by 1.2. The standard UK rate is 20%; a reduced 5% rate and a 0% rate apply to specific goods and services.
VAT registration checker
You must register for VAT once your taxable turnover goes over £90,000 in any rolling 12-month period, or if you expect to within the next 30 days.
You can register up to £20,000 more in taxable turnover before you must register.
Frequently asked questions
How do I add 20% VAT to a price?
Multiply the net (VAT-exclusive) price by 1.20. For example, £100 + 20% VAT = £120. The VAT itself is £20.
How do I remove VAT from a gross price?
Divide the gross (VAT-inclusive) price by 1.20 for the standard rate. For example, £120 ÷ 1.20 = £100 net, so the VAT included is £20. For the 5% rate, divide by 1.05.
What are the UK VAT rates?
The standard rate is 20% and covers most goods and services. The reduced rate of 5% covers things like children's car seats. For household bills, domestic gas is taxed at 5% across the UK. Qualifying domestic electricity in England, Scotland and Wales is zero-rated from 1 October 2026 to 31 March 2027. HMRC guidance includes an announced extension to 30 June 2027 inclusive. The extension for April to June 2027 was announced at Budget 2026 and is subject to implementing legislation. In Northern Ireland, qualifying domestic electricity currently carries 5% VAT. The zero rate (0%) covers most food, books, newspapers and children's clothes and, until 31 March 2027, installing energy-saving materials such as insulation, solar panels and heat pumps in homes. Some things, like insurance, education and postage stamps, are exempt entirely.
When do I have to register for VAT?
You must register once your VAT-taxable turnover goes over £90,000 in any rolling 12-month period (the backward look), or if you expect it to go over £90,000 in the next 30 days alone (the forward look). The deregistration threshold is £88,000. You can also register voluntarily below the threshold — use the registration checker on this page.
Related calculators & guides
Sources — official UK figures
- GOV.UK — VAT rates ↗
- HMRC — Fuel and power (VAT Notice 701/19) ↗
- GOV.UK — Register for VAT (£90,000 threshold) ↗
Last reviewed November 2026 against official rates · How we calculate →
A simple VAT calculator using the rate you choose. The standard UK VAT rate is 20%, with a reduced rate of 5% and a 0% rate for certain goods and services. Some items are exempt from VAT entirely. VAT registration is generally required once taxable turnover exceeds the registration threshold. This is for general information only, not tax advice.