VAT calculator
Add VAT to a price or take it out, at UK, Irish or Canadian rates: net, VAT and gross.
Job sheet
VAT calculator- Net (before VAT)
- £250.00
- VAT at 20%
- £50.00
- Gross (with VAT)
- £300.00
How it works
VAT is a percentage of the price before tax (the net price).
- Adding VAT: VAT = net × rate ÷ 100, and gross = net + VAT.
- Removing VAT: net = gross ÷ (1 + rate ÷ 100), and VAT = gross − net. At 20%, that is gross ÷ 1.2, and the VAT is one sixth of the gross.
Amounts are rounded to the nearest penny (or cent).
A worked example
A £250.00 job at 20%: £250.00 × 20 ÷ 100 = £50.00 of VAT, so £300.00 with VAT. The other way round, £300.00 including VAT ÷ 1.2 = £250.00 before VAT, and £50.00 of VAT.
The rates, as of October 2026
- United Kingdom: 20% standard, 5% reduced, 0% zero rate.
- Ireland: 23% standard, 13.5% reduced (most building work), 9% second reduced rate, 0% zero rate.
- Canada: GST at 5% in Alberta, the territories, and the provinces with their own sales tax (British Columbia, Saskatchewan, Manitoba, Quebec), which is charged on top and is not included here. HST at 13% in Ontario, 14% in Nova Scotia (since 1 April 2025) and 15% in New Brunswick, Newfoundland and Labrador, and Prince Edward Island.
Rates change with budgets: check the rate for your job with HMRC, Revenue or the CRA.
Questions
How do I add 20% VAT to a price?
Multiply the price by 0.2 for the VAT, or by 1.2 for the price with VAT. £250.00 + 20% VAT is £50.00 of VAT, £300.00 in all.
How do I take VAT out of a price?
Divide the price with VAT by 1 plus the rate: by 1.2 at 20%. £300.00 ÷ 1.2 = £250.00 before VAT. At 20%, the VAT is always one sixth of the price with VAT.
Why not just take 20% off?
Because 20% of the price with VAT is more than the VAT in it: £300.00 less 20% is £240.00, but the price before VAT was £250.00.
What VAT rate do builders charge?
In the UK, most building work is at 20%. Some is at 5% (converting a building into homes, renovating a home empty for two years or more) or 0% (building a new home, installing energy-saving materials in a home until 31 March 2027): see HMRC’s VAT Notice 708. In Ireland, most construction services are at 13.5%.
Do I have to charge VAT?
Only once you are registered. In the UK you must register when your taxable turnover goes over £90,000 in 12 months. In Ireland the threshold is €42,500 for services (€85,000 for goods). In Canada you register for GST/HST over CA$30,000 in four quarters. Thresholds as of October 2026: check with HMRC, Revenue or the CRA.
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