What is the standard UK VAT rate?

The standard UK VAT rate is 20% and applies to most goods and services. There is also a reduced 5% rate for things like domestic fuel and power, and a 0% zero rate for most food, books, and children's clothing.

How do I remove VAT from a gross price?

To remove standard-rate VAT, divide the gross price by 1.20. For example, £120 gross becomes £100 net, so the VAT element is £20. For the 5% reduced rate, divide by 1.05 instead.

How much VAT is on £100?

Adding 20% VAT to a £100 net price gives £20 of VAT and a £120 gross total. If £100 is the gross (VAT-inclusive) price, the net is £83.33 and the VAT element is £16.67.

What is the difference between zero-rated and exempt?

Zero-rated goods are taxable at 0%, so a VAT-registered business can still reclaim input VAT on related costs. Exempt goods carry no VAT and do not allow input VAT recovery. This tool covers standard, reduced, and zero rates.

UK VAT Calculator — Gera Tools

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UK VAT is added to most goods and services at 20%, with reduced and zero rates for some categories. This calculator adds VAT to a net price or removes the VAT already included in a gross price, at the standard, reduced, or zero rate.

How it works

Adding VAT multiplies the net amount by 1 plus the rate; removing VAT divides the gross amount by the same factor:

add VAT:    vat = net × rate,        gross = net × (1 + rate)
remove VAT: net = gross / (1 + rate), vat = gross − net

The standard rate is 20%, the reduced rate is 5% (for example domestic energy), and the zero rate is 0% (for example most food and books).

Example

Adding standard-rate VAT to a £100 net price gives £20 VAT and a £120 gross total. Going the other way, a £120 gross price divided by 1.20 gives a £100 net amount, confirming the £20 of VAT included.

Notes

Estimate only, not tax advice. Uses the UK standard (20%), reduced (5%), and zero (0%) VAT rates. Some supplies are VAT-exempt rather than zero-rated, which affects input VAT recovery. Registration thresholds, the flat-rate scheme, and partial exemption are not modelled. Verify at gov.uk.