Add VAT to a net amount or remove VAT from a gross amount. The default 20% is the UK standard rate; change it for the applicable transaction and jurisdiction.
VAT = net × rate / 100. Gross = net × (1 + rate / 100). Net = gross / (1 + rate / 100).
At 20%, a net amount of £100 has £20 VAT and a gross amount of £120. Removing VAT from £120 gives £100, not £96: division by 1.20 is required.
The default does not mean every UK purchase is taxed at 20%. Reduced rates, zero rating, exemptions and special schemes depend on the supply. Currency selection changes display only. Invoice line-by-line rounding can differ from a calculation on the whole total.
References support the identified formula, unit or jurisdiction. They do not imply endorsement of this site. Check the original document for current conditions and exceptions.
Editorial responsibility: Nicolas Belotti · Methods and testing · Report an error
English edition: 16 September 2026.