How to add or remove VAT
Add VAT: gross = net × (1 + rate)
Remove VAT: net = gross ÷ (1 + rate)
At 20%: VAT = gross ÷ 6
Remove VAT: net = gross ÷ (1 + rate)
At 20%: VAT = gross ÷ 6
A common mistake is to take 20% off a price that already includes VAT. That gives the wrong answer: £120 minus 20% is £96, but the price without VAT is £100. Always divide by 1.2.
UK VAT rates
| Rate | Applies to (examples) |
|---|---|
| Standard 20% | Most goods and services |
| Reduced 5% | Some goods, such as children's car seats (check GOV.UK for the full list) |
| Zero 0% | Most food, children's clothes, books and newspapers |
Quick examples at 20%
| Net | VAT | Gross |
|---|---|---|
| £100 | £20 | £120 |
| £250 | £50 | £300 |
| £1,000 | £200 | £1,200 |
| £83.33 | £16.67 | £100 |
Sources
Frequently asked questions
How do I remove 20% VAT from a price?
Divide the price by 1.2. For example, £120 ÷ 1.2 = £100 net, so the VAT is £20.
How do I add VAT to a price?
Multiply the net price by 1.2 for 20% VAT. £100 becomes £120.
What is the VAT on £100?
£20 at the standard rate, making £120. If £100 already includes VAT, the VAT part is £16.67.
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Last updated October 2026.