VAT Calculator
Use this VAT calculator to quickly add or remove Value Added Tax from any amount. You can also adjust the rate setting to calculate historical VAT rates (such as 15% or 17.5%) for older accounting records or reduced-rate items. For more details on UK VAT rates and history, see below.
What is VAT?
Value Added Tax (VAT) is a consumption tax added to the purchase price of most goods and services in the UK.
The standard UK VAT rate in 2026 is 20%. This rate has been in place since 4 January 2011, following a temporary reduction to 15% during the 2008 financial crisis and a brief return to 17.5% in 2010. UK Gov website source
How to Calculate VAT (at 20%)
Adding VAT to a Net Amount:
To calculate the total price including VAT, multiply your net amount by 1.2.
Formula: Net Price × 1.2 = Gross Price (Inc. VAT)
Removing VAT from a Gross Amount:
To work backwards and find the original price before VAT was added, divide your VAT-inclusive amount by 1.2.
Formula: Gross Price ÷ 1.2 = Net Price (Excl. VAT)
Finding the VAT Amount on a Gross Price:
If you have a total price that already includes 20% VAT and just want to know how much tax was paid, divide the total by 6 (do not multiply by 0.2, as this calculates 20% of the gross total rather than 20% of the original net price).
Formula: Gross Price ÷ 6 = VAT Amount
Historical UK VAT Rates
1977 - 1979: 8% (plus higher rate of 12.5%)
1979 - 1991: 15%
1991 - 2008: 17.5%
2008 - 2010: 15%
2010 - 2011: 17.5%
2011 - 2026: 20%
Insurance Premium Tax (IPT)
This calculator also includes a toggle for calculating standard (12%) and higher rate (20%) Insurance Premium Tax. IPT is a specific tax levied on general insurance premiums in the UK. More about IPT