How to add VAT to a net price
Multiply the net amount by 1 plus the VAT rate. At 20%, £100 × 1.20 gives a gross price of £120 and VAT of £20.
Add or remove UK VAT and see the net amount, VAT amount and gross price with a clear formula.
Select the rate that applies to the goods or services.
Common national rates for quick calculations. The exact treatment depends on the supply.
| Rate | Typical application |
|---|---|
| 20% · Standard rate | Most goods and services |
| 5% · Reduced rate | Selected goods and services, including domestic fuel and power |
| 0% · Zero rate | Most food, children’s clothes and other zero-rated supplies |
Official source: HM Revenue & Customs – VAT rates.
Multiply the net amount by 1 plus the VAT rate. At 20%, £100 × 1.20 gives a gross price of £120 and VAT of £20.
Divide the VAT-inclusive price by 1 plus the VAT rate. For 20% VAT, £120 ÷ 1.20 is £100 net. Simply subtracting 20% is incorrect.
The standard UK rate is 20%, the reduced rate is 5%, and a 0% rate applies to specified zero-rated supplies. Exempt supplies are different from zero-rated supplies.
Results are rounded to two decimal places for display. Invoice and scheme-specific rounding rules may differ, so accounting records should follow HMRC guidance.