VAT (Value Added Tax) is added to many goods and services in the UK. Understanding how VAT works can help businesses and individuals quickly calculate prices including or excluding tax.
The standard UK VAT rate is currently 20%.
To add VAT:
Price × 1.20
Example:
£100 × 1.20 = £120
To remove VAT from a total price:
Total ÷ 1.20
Example:
£120 ÷ 1.20 = £100
You can quickly calculate VAT using our online tool below:
Businesses registered for VAT must charge VAT on eligible products and services. Accurate VAT calculations are important for pricing, invoices and tax reporting.
VAT stands for Value Added Tax and is a tax added to many goods and services in the UK.
The standard UK VAT rate is 20%.
Multiply the original amount by 1.20 to add VAT.