Question 1

How do I add 20% VAT to a price?

Accepted Answer

Multiply the net (ex-VAT) price by 1.20. For example: £100 net price × 1.20 = £120 gross (VAT-inclusive) price. The VAT amount is £20. Use this calculator to add any VAT rate instantly.

Question 2

How do I remove VAT from a price?

Accepted Answer

Divide the gross (VAT-inclusive) price by 1 plus the VAT rate. For 20% VAT: divide by 1.20. Example: £120 ÷ 1.20 = £100 net price. The VAT amount is £120 − £100 = £20. Never subtract 20% directly — that gives the wrong answer.

Question 3

What is the VAT rate in the UK?

Accepted Answer

The standard UK VAT rate is 20%. There is a reduced rate of 5% for certain goods (home energy, children's car seats). Zero-rated goods (children's clothing, most food, books, newspapers) have a 0% rate but businesses can still reclaim input VAT on zero-rated supplies.

Question 4

What is the VAT rate in Israel?

Accepted Answer

Israel's standard VAT rate (מע"מ — Ma'am) is 17% as of 2024. It applies to most goods and services. Some areas such as Eilat have exemptions. Businesses with annual turnover above the registration threshold must register and charge VAT.

Question 5

Why can't I just subtract 20% to remove VAT?

Accepted Answer

Because VAT is added to the net price, not the gross price. If you subtract 20% from a VAT-inclusive price, you get the wrong answer. Example: £120 gross. Subtracting 20% gives £96 — wrong. Dividing by 1.20 gives £100 — correct. The VAT was calculated on £100, not £120.

Question 6

What is the difference between VAT-inclusive and ex-VAT prices?

Accepted Answer

Ex-VAT (exclusive of VAT) is the net price before VAT is added — what the seller receives. VAT-inclusive (gross price) is what the customer pays, including the VAT amount. Businesses typically quote ex-VAT prices to other businesses, and VAT-inclusive prices to consumers.

Add or Remove
VAT Instantly

VAT Rates by Country

How VAT works

Common questions

Add or RemoveVAT Instantly

VAT Rates by Country

How VAT works

Common questions

Add or Remove
VAT Instantly