How it works
For £100 net at 20% VAT, the gross amount is £120. To remove 20% VAT from £120 gross, divide by 1.20 to get £100 net and £20 VAT.
VAT treatment depends on the goods or services and current rules. Zero-rated and exempt supplies are not the same; use this tool only for arithmetic, not classification.
Frequently asked questions
Is this calculator intended for the UK?
Yes. The English version uses common UK VAT rates and displays GBP.
How do I reverse-calculate VAT?
Choose “Remove VAT from gross amount”. The tool divides the gross amount by one plus the VAT rate.
Adding and removing VAT correctly
To add 20% VAT to £100 net, multiply by 1.20 to get £120 gross. To remove 20% VAT from £120 gross, divide by 1.20 to get £100 net. Subtracting 20% directly from the gross amount would be incorrect.
The English calculator uses common UK VAT rates. Actual VAT liability and the distinction between zero-rated and exempt supplies depend on applicable rules, which the tool does not determine. You can calculate profit margins separately.