VAT Calculator · Practical guide
How Much Is 20% VAT on £100?
£20 added to a net £100 — but only £16.67 hidden inside a VAT-inclusive £100. Both answers explained.
At a glance
The Short Answer
It depends which £100 you mean. Adding 20% VAT to a £100 net price gives £20 of VAT and a £120.00 gross total. But if £100 is the VAT-inclusive price, the tax inside it is £16.67 and the net is £83.33.
Interactive tool
VAT Calculator
Enter your own values, then compare the result with the examples below.
VAT Breakdown
Case 1: £100 Before VAT
Multiply by the rate: £100.00 × 0.20 = £20.00 VAT, so the customer pays £100.00 + £20.00 = £120.00. This is the invoicing situation — you quote a net price and add tax on top.
Case 2: £100 Including VAT
Divide by 1.20: £100.00 ÷ 1.20 = £83.33 net, and the VAT portion is £100.00 − £83.33 = £16.67. This is the expense-report situation — UK and EU shelf prices are displayed tax-inclusive, so receipts need this reverse calculation. The VAT share of any 20% gross price is always 16.67% (that is, 20 ÷ 120).
Why the Two Answers Differ
The 20% rate applies to the net amount, not the gross. £20 is 20% of £100, but £16.67 is 20% of £83.33. Check it: £83.33 × 1.20 = £100.00 exactly.
Other Rates on £100
| VAT Rate | VAT on £100 Net | Gross Total | VAT Inside £100 Gross |
|---|---|---|---|
| 5% (UK reduced) | £5.00 | £105.00 | £4.76 |
| 19% (Germany) | £19.00 | £119.00 | £15.97 |
| 20% (UK standard) | £20.00 | £120.00 | £16.67 |
| 25% (Sweden) | £25.00 | £125.00 | £20.00 |
Frequently Asked Questions
What is £100 plus VAT at 20%?
£120.00. The VAT is £100.00 × 0.20 = £20.00, added to the £100.00 net price.
How much VAT is in a £100 VAT-inclusive price?
£16.67. Divide £100.00 by 1.20 to get the £83.33 net, then subtract to find the tax.
Why is 20% VAT on a gross £100 only £16.67?
Because the 20% rate applies to the net price, not the total. The VAT share of a tax-inclusive price is 20 ÷ 120 = 16.67%.
Are UK prices shown with VAT included?
Consumer prices in the UK are normally displayed inclusive of VAT, so the £100 on the tag already contains £16.67 of tax at the standard 20% rate.