Business
VAT Inclusive / Exclusive Calculator
Toggle between a net and gross price using the VAT rate that applies to your sale.
Add or remove VAT
UK shoppers usually see VAT-inclusive prices; B2B quotes and many supplier lists show amounts exclusive of VAT. Mixing the two is a classic way to under-quote a job or double-count tax on a spreadsheet. This calculator converts a figure either way at the rate you enter — commonly 20% standard rate in the UK, with reduced or zero-rated goods needing their own rate. Enter the net to see the gross, or the gross to strip VAT back to the net and the VAT amount itself. Always confirm which rate applies to the goods or services; the tool does arithmetic, not classification. When you set retail tickets from cost, pair this with gross margin so margin is calculated on a consistent VAT basis. Reverse checks that start from a VAT-inclusive receipt sit beside reverse percentage. For marketplace fees charged on the customer price, be clear whether your fee base is VAT-inclusive. Planning maths only — not VAT registration, Making Tax Digital or HMRC advice. Keep a note on each quote stating ‘ex-VAT’ or ‘inc-VAT’ in the same place every time so teammates do not reinterpret the number later.
Worked example
A net price of £80 at 20% VAT becomes £96 gross (£16 VAT). Starting from a £96 shelf price, net = 96 ÷ 1.20 = £80. At 5% reduced rate the same net is £84 gross. If a contractor quotes £1,200 ‘plus VAT’ and a client budget is £1,200 inclusive, the true net available is only £1,000 at 20%.
Limits and assumptions
Assumes a single flat rate on the whole amount. Mixed-rate invoices, reverse-charge supplies and margin schemes need separate lines. Not a substitute for your accountant or HMRC guidance.
Frequently asked questions
How do I add VAT to a net price?
Multiply by (1 + rate/100). At 20%, multiply by 1.2.
How do I remove VAT from a gross price?
Divide by (1 + rate/100). At 20%, divide by 1.2.
Should margin use net or gross figures?
Stay consistent. Many UK retailers price and margin on VAT-inclusive tickets; wholesalers often work ex-VAT.
What rate should I enter?
Use the rate that applies to those goods or services. Confirm reduced or zero-rated items separately.
Can I use this for EU or other countries?
Yes if you enter the correct local rate — the formula is the same; the legal duty is not.