Use our VAT Calculator to instantly add or remove VAT from any amount.
In the United Kingdom, the standard Value Added Tax (VAT) rate is 20%. When VAT is added to a net price of £100, the VAT amount is £20, resulting in a total price of £120.
VAT is a consumption tax applied to most goods and services sold in the UK. Businesses that are registered for VAT collect the tax on behalf of HM Revenue & Customs (HMRC).
To calculate VAT on £100 using the standard UK VAT rate:
Formula:
VAT = Net Price × VAT Rate
£100 × 20% = £20 VAT
If you already have a VAT-inclusive price and want to find the original amount before VAT:
Formula:
Net Price = VAT Inclusive Price ÷ 1.20
| Net Price | VAT (20%) | Total Price |
|---|---|---|
| £50 | £10 | £60 |
| £100 | £20 | £120 |
| £250 | £50 | £300 |
| £500 | £100 | £600 |
| £1,000 | £200 | £1,200 |
The UK uses several VAT rates depending on the goods or services involved.
| Rate | Description |
|---|---|
| 20% | Standard rate applied to most goods and services. |
| 5% | Reduced rate for certain items such as home energy and some children's car seats. |
| 0% | Zero-rated items such as most food, books, newspapers, and children's clothing. |
Understanding VAT is important for both consumers and businesses. Knowing whether prices include or exclude VAT helps with budgeting, invoicing, bookkeeping, and tax compliance.
For businesses, accurate VAT calculations are essential when issuing invoices, submitting VAT returns, and managing cash flow.
A VAT calculator is useful whenever you need to:
How much is VAT on £100?
At the standard UK VAT rate of 20%, VAT on £100 is £20.
What is the total including VAT?
£100 plus 20% VAT equals £120.
How do I remove VAT from £120?
Divide £120 by 1.20 to obtain the original net value of £100.
Do all products have 20% VAT?
No. Some products qualify for reduced-rate VAT (5%) or zero-rated VAT (0%).
Can businesses reclaim VAT?
VAT-registered businesses may be able to reclaim VAT on eligible business purchases, subject to HMRC rules.
Information on this page is based on publicly available guidance, official government publications, and commonly accepted financial calculation methods.
Use our VAT Calculator to instantly add or remove VAT from any amount.
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Last Updated: August 2026