Quick answer: Inc VAT (also written incl. VAT or including VAT) means the price already contains VAT. Ex VAT, excl. VAT and + VAT mean VAT has not been added yet. At 20%, £100 ex VAT is £120 inc VAT.
UK prices, quotes and invoices use these labels constantly, and mixing them up is an easy way to overpay or undercharge. This guide explains each label, shows how to convert between them and links to tools that do the sums for you.
What does inc VAT mean?
When a price is shown inc VAT, the amount already includes the VAT charged by the seller. A shop price of £120 including VAT contains £100 of goods and £20 of VAT at the standard 20% rate. This is the price most consumers see on shelves and websites.
What do ex VAT and + VAT mean?
Ex VAT, excl. VAT and + VAT all mean the price is before VAT, with VAT added on top. A quote of £250 + VAT costs £300 once 20% VAT is added. Trade suppliers and contractors usually quote this way because VAT-registered customers can reclaim the VAT.
| Label | Means | Price shown is |
|---|---|---|
| Inc VAT, incl. VAT, including VAT | VAT is in the price | Gross |
| Ex VAT, excl. VAT, excluding VAT | VAT is not in the price | Net |
| + VAT, plus VAT | VAT will be added on top | Net |
How to convert an inc VAT price to ex VAT
- Ex VAT to VAT-inclusive: multiply by 1.2. £250 ex VAT = £300 gross.
- Gross to ex VAT: divide by 1.2. £300 gross = £250 ex VAT.
- VAT amount: the ex VAT price × 0.2, or the gross price ÷ 6.
For the 5% reduced rate use 1.05 instead of 1.2. Dividing by 6 only works at 20%. A common mistake is to subtract 20% from a gross price: £300 minus 20% is £240, not £250. See how to remove VAT from a price for the full method.
Should a business quote inc VAT or ex VAT?
Prices to consumers normally have to include VAT, so shops show inc VAT prices. Trade suppliers often quote ex VAT because their customers reclaim the VAT. Invoices should show the net amount, the VAT and the total separately. A quote that says only “£500” is unclear, so state whether VAT is included. More detail is in VAT inclusive vs exclusive and net vs gross price.
Net of VAT and plus VAT meaning
Net of VAT means the amount before VAT is added, so a net price of £250 becomes £300 with 20% VAT. Net is the opposite of gross, which is the price after VAT. See net vs gross price for examples.
Does plus VAT mean including VAT? No. Plus VAT means VAT will be added on top, so £250 + VAT is £300 at 20%. If you also want to know what a business being VAT registered means, read what does VAT registered mean.
Official guidance and tools
HMRC lists the current rates on GOV.UK. To work out any amount use the UK VAT calculator, the plus VAT table or the VAT invoice generator.
Common questions about VAT labels
What does inc VAT mean on a quote?
The total you pay already includes VAT at the applicable rate. Nothing more is added at checkout.
What does + VAT mean?
VAT will be added to the price shown, usually at 20%.
Is ex VAT the same as net?
Yes. Both mean the amount before VAT.
