UK VAT Calculator
Quickly add or remove UK Value Added Tax at standard, reduced, or zero rates with exact penny rounding per HMRC Notice 700.
Interactive VAT Calculator
Calculation Results
Net Amount (Excl. VAT)
£100.00
VAT Amount (20%)
£20.00
Gross Total (Incl. VAT)
£120.00
Formula applied: £100.00 × 20% = £20.00 tax; total = £120.00
How VAT is Calculated
1. Adding VAT (Net to Gross)
To calculate the gross price when starting with a net (exclusive) price:
Gross Amount = Net Amount + VAT Amount
Example: On a £100 net item, VAT is £100 × 20% = £20.00. Total gross is £120.00.
2. Removing VAT (Gross to Net)
To extract the tax from an inclusive gross price:
VAT Amount = Gross Price − Net Amount (Tax fraction: 1/6)
Per HMRC Notice 700 s17.5, multiplying a 20% VAT-inclusive price by 1/6 gives the exact VAT.
Common VAT Calculations Table
Quick reference matrix showing standard calculations for common amounts, precomputed with exact rounding.
Adding 20% VAT (Net → Gross)
| Net Price | VAT (20%) | Gross Total |
|---|---|---|
| £10.00 | +£2.00 | £12.00 |
| £25.00 | +£5.00 | £30.00 |
| £50.00 | +£10.00 | £60.00 |
| £100.00 | +£20.00 | £120.00 |
| £120.00 | +£24.00 | £144.00 |
| £250.00 | +£50.00 | £300.00 |
| £500.00 | +£100.00 | £600.00 |
| £1,000.00 | +£200.00 | £1,200.00 |
| £5,000.00 | +£1,000.00 | £6,000.00 |
Removing VAT (Gross → Net)
| Gross Total | VAT Content | Net Price |
|---|---|---|
| £10.00 | -£1.67 | £8.33 |
| £25.00 | -£4.17 | £20.83 |
| £50.00 | -£8.33 | £41.67 |
| £100.00 | -£16.67 | £83.33 |
| £120.00 | -£20.00 | £100.00 |
| £250.00 | -£41.67 | £208.33 |
| £500.00 | -£83.33 | £416.67 |
| £1,000.00 | -£166.67 | £833.33 |
| £5,000.00 | -£833.33 | £4,166.67 |
Statutory Rounding Rules
Under HMRC Notice 700 (Section 17.5), businesses may round VAT down or to the nearest penny on each invoice line. SAGVIM implements the standard commercial convention: amounts are rounded to the nearest penny, with exact half-pence (0.5p) rounded up.
Official Regulatory Authorities & Legislation
Calculation rules verified against published statutory sources on 19 October 2026.
- Value Added Tax Act 1994 (c. 23)
Statutory VAT rates: Section 2 standard rate (20%), Section 29A reduced rate (5%), Section 30 zero-rating.
- HMRC Notice 700: The VAT Guide (Section 17.5 Rounding Rules)
VAT calculation on invoices, tax fraction rules, and half-penny rounding convention (0.5p rounded up).
- GOV.UK: VAT rates on different goods and services
Overview of current UK VAT rates and applicable item categories.
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Explore our 2026–27 UK Take-Home Pay Calculator with statutory Income Tax, National Insurance, and pension deductions.
Frequently Asked Questions
How do you calculate UK VAT?
To add 20% VAT to a net amount, multiply the net price by 0.20 to find the VAT, then add it to get the gross total. To remove 20% VAT from a gross price, divide the gross amount by 1.20 to find the net price, then subtract the net price from the gross total.
What are the current UK VAT rates?
The UK standard rate is 20% (applies to most goods and services). The reduced rate is 5% (applies to items like domestic energy and children's car seats). The zero rate is 0% (applies to most food, books, children's clothes, and public transport).
What is the VAT tax fraction for removing 20% VAT?
Per HMRC Notice 700, the tax fraction for a 20% VAT rate is 1/6 (or rate / (100 + rate)). Multiplying a gross price by 1/6 gives the exact VAT amount included.
How does rounding work for UK VAT?
Per HMRC rules, VAT is rounded to the nearest penny. Amounts of half a penny (0.5p) or more are rounded up to the nearest whole penny.
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