Welcome to VAT Calculator!

To add VAT, multiply the net (ex-VAT) amount by the VAT rate as a decimal and add it to the net. At the standard UK rate of 20%, multiply the net by 1.20 to get the gross. To remove VAT from a gross price, divide by 1.20 instead. This calculator does both operations for you in one click.

Enter the net amount (excluding VAT), select the rate — Standard 20%, Reduced 5% or Zero 0% — and press "Add VAT". The calculator multiplies the net by 1 + rate (e.g. net × 1.20 at 20%) and shows the VAT amount and gross (VAT-inclusive) total.

Enter the gross (VAT-inclusive) amount and press "Remove VAT". The calculator divides the gross by 1 + rate (e.g. gross ÷ 1.20 at 20%) to recover the net figure. Do not simply subtract 20% of the gross — that gives the wrong answer because VAT is calculated on the net, not the gross.

The standard UK VAT rate is 20% and has been since 4 January 2011. A reduced rate of 5% applies to certain goods and services such as domestic energy, child car seats and some building work. Some items are zero-rated (0%) including most food, children's clothes and books. Check HMRC for the full list.

From April 2024 the UK VAT registration threshold is £90,000. If your taxable turnover exceeds this amount in any rolling 12-month period you must register for VAT with HMRC. Once registered, you charge VAT on your sales and can reclaim VAT on eligible business purchases.

A reverse VAT calculation extracts the VAT from a gross (VAT-inclusive) price. At 20%, the VAT element is always one sixth of the gross — or equivalently, gross ÷ 1.20 gives the net, and gross minus net gives the VAT. Use the "Remove VAT" button on this calculator to do a reverse VAT calculation instantly.

Net is the price before VAT is added (excluding VAT). Gross is the total price after VAT has been added (including VAT). For example, if a product costs £100 net and VAT is 20%, the gross price is £120 and the VAT amount is £20.

20% of a gross price is not the same as the VAT embedded in that price. VAT at 20% is calculated on the net amount, which makes it one sixth of the gross — not one fifth. Dividing the gross by 1.20 recovers the correct net; subtracting 20% of the gross overstates the VAT and understates the net.

Zero-rated supplies are within the VAT system — you charge 0% but can normally reclaim input VAT on related business costs. Exempt supplies are outside VAT, so you usually cannot reclaim the VAT on costs connected to those exempt activities. The distinction matters for VAT-registered businesses.

List the net amount for each line item, calculate VAT for each at the correct rate (20%, 5% or 0%), then show totals for net, VAT and gross. A valid UK VAT invoice must include your VAT registration number, the date, invoice number, your details, the customer's details, and a line-by-line VAT breakdown.

Yes. Enter your figure, choose the VAT rate that applies, and press Add VAT or Remove VAT. Use the net, VAT and gross figures on quotes, invoices, expense reports or bookkeeping. Always confirm the correct VAT rate for your supply with HMRC or your accountant — this tool handles the arithmetic.

The flat rate scheme is a simplified VAT scheme for small businesses with taxable turnover of £150,000 or less (excluding VAT). Instead of calculating VAT on every purchase and sale, you pay a fixed percentage of your gross turnover to HMRC. The percentage varies by industry — for example, 14.5% for computer and IT consultancy. You cannot reclaim VAT on purchases under this scheme (except capital assets over £2,000).