Adding VAT
A 20% VAT rate means a £100 net amount becomes £120 gross. The VAT element is £20.
Removing VAT
To remove 20% VAT from a VAT-inclusive price, divide by 1.20. A £120 gross price therefore contains £20 VAT and £100 net. Subtracting 20% from £120 would incorrectly produce £96.
Check the rules that apply
VAT treatment can depend on the product, service and circumstances. Use the calculator for arithmetic, but verify current rates and treatment with HMRC or a qualified adviser when it matters.
ProfitMaths guides provide general educational information, not personalised accounting, tax, legal or financial advice.