Amount
VAT Rate (%)
Common VAT rates
Mode
Result (click to copy)
Frequently Asked Questions
What is VAT?
VAT (Value Added Tax) is a consumption tax levied at each stage of the supply chain. Unlike sales tax (collected only at point of sale), VAT is collected at every stage but businesses reclaim the VAT they've paid on purchases, so only the end consumer bears the final cost.
What is the VAT rate in the UK?
The UK has three VAT rates: Standard rate 20% (most goods and services), Reduced rate 5% (home energy, children's car seats, sanitary products), and Zero rate 0% (most food, books, children's clothing, public transport).
How do I remove VAT from a price?
Divide the VAT-inclusive (gross) price by (1 + VAT rate/100). For 20% VAT: Net = Gross ÷ 1.20. Example: £120 ÷ 1.20 = £100 net + £20 VAT. This calculator does this automatically in 'Remove VAT' mode.
What is the difference between VAT and GST?
Both are consumption taxes on goods and services, but they have different names and rates by country. UK/EU uses VAT. India, Australia, Canada, and Singapore use GST. The calculation method is identical — they differ mainly in rate and administrative details.