How to calculate a VAT percentage
To find the VAT on an amount, multiply the amount before VAT by the rate as a decimal:
VAT = Net amount × (VAT rate ÷ 100)
20% of £250 = £250 × 0.20 = £50
To find which rate was charged, take the VAT away from the total, then divide by the net amount:
VAT rate = (Gross − Net) ÷ Net × 100
(£240 − £200) ÷ £200 × 100 = 20%
Worked examples
| Question | Answer |
|---|---|
| 20% VAT on £250 | £50.00 (total £300.00) |
| 5% VAT on £80 | £4.00 (total £84.00) |
| 17.5% VAT on £100 | £17.50 (total £117.50) |
| Net £200, gross £240 — what rate? | 20% |
| Net £80, gross £84 — what rate? | 5% |
| Net £100, gross £115 — what rate? | 15% |
20% of the net is not 20% of the total
VAT rates are always a percentage of the price before VAT. So on a £120 total, the £20 VAT is 20% of the £100 net price but only 16.67% of the £120 you paid. The Find the rate mode shows both figures, which helps when a receipt or bank statement only shows totals.
| VAT rate (of net) | Share of the total that is VAT |
|---|---|
| 20% | 16.67% (one sixth) |
| 5% | 4.76% (one twenty-first) |
| 0% | 0% |
Past UK standard rates
If you are checking an old invoice, the rate on it may not be 20%. Use the custom percentage option for these.
| Period | Standard rate |
|---|---|
| 1 April 1991 – 30 November 2008 | 17.5% |
| 1 December 2008 – 31 December 2009 | 15% |
| 1 January 2010 – 3 January 2011 | 17.5% |
| From 4 January 2011 | 20% |
Frequently asked questions
How do I work out 20% VAT?
Multiply the amount before VAT by 0.2. For £75, the VAT is £15 and the total is £90.
How do I find what percentage VAT was charged?
Subtract the net amount from the total to get the VAT, divide the VAT by the net amount, then multiply by 100. The Find the rate mode does this for you.
Why does my rate come out as 19.98% instead of 20%?
VAT is rounded to the nearest penny, so on small amounts the rate worked backwards can be slightly off. A result within a few hundredths of 20% or 5% almost always means that rate was charged.
What if the total already includes VAT and I don't know the net?
Use the Reverse VAT Calculator. It splits a VAT-inclusive total into the net and the VAT.