UK VAT calculator: 20%
Short intro: UK VAT mainly uses 20%, 5% and 0% rates. This page helps you calculate VAT from net to gross and from gross back to net, because even tax arithmetic deserves a leash.
Main UK VAT rates
The standard rate is 20%. The UK also has a reduced 5% rate, a zero 0% rate and exemptions for selected transactions.
Formula
VAT = Net amount × Rate / 100Gross = Net amount × (1 + Rate / 100)Net = Gross / (1 + Rate / 100)
Calculate UK VAT at 20%
To add 20% VAT, multiply the net amount by 1.20. To remove it from a gross amount, divide by 1.20.
Difference between zero-rated and exempt
Zero-rated and exempt are not the same. Both may produce no VAT amount in a simple calculation, but the VAT treatment can differ.
Practical numerical examples
- Net £100.00 at 20% → VAT £20.00, gross £120.00.
- Gross £120.00 at 20% → net £100.00, VAT £20.00.
- Net £100.00 at 5% → VAT £5.00, gross £105.00.
FAQ
What is the standard UK VAT rate?
The standard rate is 20%.
Does the 5% rate apply to everything?
No. It applies only to specific categories.
Are zero-rated and exempt the same?
No. They may both show no VAT in a basic calculation, but the treatment is different.
Recommended internal links
Careful tax disclaimer
VAT rates and treatments can change, and exceptions may apply. Before using a calculation on an invoice or return, check the current rate, country and transaction type from updated sources.