Add VAT, or take it back out
Both directions at once — because they are not the same sum, and that catches people out.
Type the figure you have — both directions are worked out below
You choose the rate — this calculator never guesses which rate your goods fall under
If £1,000 is the price before VAT
£1,200.00
£200.00 of VAT added
| Price before VAT | £1,000.00 |
|---|---|
| VAT | £200.00 |
| Price including VAT | £1,200.00 |
| Price including VAT | £1,000.00 |
|---|---|
| VAT within it | £166.67 |
| Price before VAT | £833.33 |
Taking VAT out is not taking 20% off
Taxable turnover only — leave out exempt and out-of-scope sales
The link carries your figures so anyone opening it sees the same calculation. Nothing is sent anywhere.
Figures for the 2026/27 UK tax year. Rates last checked against HMRC on 31 August 2026. See every source.
How to add or remove VAT
Taking VAT out of a price is the calculation people get wrong. A price of £120 including VAT at the standard rate is £100 before VAT, not £96 — you divide by 1.2 rather than taking 20% off. The two methods differ by four pounds in every hundred and twenty, and the wrong one understates taxable turnover, which is the direction that causes problems when the return is filed. This page shows both directions side by side rather than hiding one behind a toggle, so the asymmetry is visible rather than explained. It also does not guess which rate applies to what you sell: the boundary between standard, reduced, zero-rated and exempt is a genuine matter of dispute with HMRC, and it is not something a free calculator should have an opinion about.
- 1Type the amount you have, whichever direction it is — you do not have to decide first.
- 2Pick the rate that applies to what you are selling.
- 3Read whichever of the two panels matches your situation: adding VAT on, or taking it back out.
- 4If you are tracking registration, add your taxable turnover for the last 12 months at the bottom.
FAQ
How do I remove VAT from a price?
Divide by 1.2 for the standard rate, or by 1.05 for the reduced rate. Do not take 20% off — that gives a different, smaller figure. Removing VAT and adding VAT are not mirror images of each other, which is why both are shown on this page rather than one at a time.
What is the difference between zero-rated and exempt?
Zero-rated sales are inside the VAT system at a rate of 0%, so they count towards your taxable turnover and towards the registration threshold, and you can normally reclaim VAT on related costs. Exempt sales are outside it entirely and do neither. This calculator handles zero-rated sales; exempt supplies are outside its scope.
When do I have to register for VAT?
When taxable turnover for the previous 12 months goes over the threshold. The test rolls month by month rather than following your accounting year, so it can be crossed at any point. There is a second test as well: you must register if you expect to go over the threshold in the next 30 days on its own. That one depends on your own forecast, so no calculator can run it for you.
What is not covered here?
Which rate applies to a particular product, the flat rate scheme, cancelling a registration, VAT on imports, the margin schemes, and anything involving partial exemption. This page does the arithmetic and the registration threshold; the classification questions belong with HMRC or an accountant.
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