Calculate 20% VAT Instantly
Use this VAT tool to either add 20% VAT to a net amount or remove 20% VAT from a gross amount.
What is a 20% VAT calculator?
A 20% VAT calculator helps you quickly work out value added tax for sales, invoices, and pricing decisions. In practical terms, it answers two common questions:
- How much is the total if I add 20% VAT?
- How much VAT is included in a VAT-inclusive total?
If you run a business, freelance, or simply need to verify a bill, this saves time and reduces manual errors.
How to calculate 20% VAT
1) Add VAT to a net amount
When your price is excluding VAT (net), multiply by 1.20:
- VAT amount = Net × 0.20
- Gross amount = Net × 1.20
Example: Net £100 → VAT £20 → Gross £120.
2) Remove VAT from a gross amount
When your price already includes VAT (gross), divide by 1.20:
- Net amount = Gross ÷ 1.20
- VAT amount = Gross − Net
Example: Gross £120 → Net £100 → VAT £20.
Quick examples
| Scenario | Input | Net | VAT (20%) | Gross |
|---|---|---|---|---|
| Add VAT | 100.00 | 100.00 | 20.00 | 120.00 |
| Add VAT | 349.99 | 349.99 | 70.00 | 419.99 |
| Remove VAT | 240.00 | 200.00 | 40.00 | 240.00 |
| Remove VAT | 59.99 | 49.99 | 10.00 | 59.99 |
When should you add or remove VAT?
- Add VAT when building customer-facing prices from your net price.
- Remove VAT when checking what part of a VAT-inclusive payment is tax versus revenue.
- Reconcile invoices to ensure your billing and accounting figures align.
Common VAT mistakes to avoid
Using the wrong base amount
A common mistake is calculating 20% from a gross figure when you should be using net (or vice versa). Always identify whether your starting amount includes VAT.
Applying wrong rounding rules
Round consistently to two decimal places for currency. If you invoice line-by-line, apply your standard accounting policy across all invoices.
Assuming every product uses the same VAT rate
This page is specifically for 20% VAT. Some goods or services may be zero-rated, reduced-rate, or exempt depending on jurisdiction and category.
Simple VAT checklist for small businesses
- Confirm whether your price list is net or gross.
- Use a consistent formula in quotes and invoices.
- Store VAT amount separately in your records.
- Double-check totals before sending invoices.
- Keep digital copies of supporting calculations.
Frequently asked questions
How do I add 20% VAT quickly?
Multiply your net amount by 1.20, or use the calculator above with “Add 20% VAT”.
How do I remove 20% VAT from a total?
Divide the gross amount by 1.20 to find net, then subtract net from gross to get VAT.
Can I use this for invoice checks?
Yes. This tool is ideal for verifying line items, totals, and VAT components before issuing or paying invoices.
If you frequently handle pricing and invoices, bookmarking a reliable 20 VAT calculator can save significant time and improve financial accuracy.