💷 Finance & tax

VAT Calculator UK

Add or remove VAT at 20%, 5%, or 0% instantly. Perfect for invoices, quotes, and receipts.

VAT rate
£
Net amount (ex. VAT)
—
Before VAT
VAT amount
—
at 20%
Gross amount (inc. VAT)
—
Total to pay
Standard rate (20%): Applies to most goods and services in the UK. If you're VAT registered and charging a customer, this is the rate you'll use for most transactions.

UK VAT rates explained

VAT RateWhen it appliesExamples
20% StandardMost goods and servicesElectronics, clothing, restaurant meals
5% ReducedCertain essential goodsHome energy, children's car seats, sanitary products
0% Zero-ratedEssential goods and servicesMost food, children's clothing, books, medications
ExemptNot subject to VATInsurance, financial services, education, health services

How to add VAT in the UK

To add VAT to a net (excluding VAT) amount, multiply the net amount by the VAT rate and add it to the original figure. For example, to add 20% VAT to £100: £100 × 1.20 = £120. The VAT amount is £20 and the gross (VAT-inclusive) price is £120.

How to remove VAT (reverse VAT calculation)

To remove VAT from a gross (VAT-inclusive) amount, divide by 1 plus the VAT rate. For 20% VAT: £120 ÷ 1.20 = £100. The net amount is £100 and the VAT is £20. This is sometimes called a "reverse VAT calculation" or "working backwards from a VAT-inclusive price."

Who needs to charge VAT in the UK?

You must register for VAT if your VAT-taxable turnover exceeds £90,000 in any 12-month period (as of 2024). Once registered, you must charge VAT on your taxable sales and can reclaim VAT on your business purchases. You can also register voluntarily if your turnover is below this threshold.

What is the difference between VAT-inclusive and VAT-exclusive prices?

A VAT-exclusive price (also called "net" or "ex-VAT") is the price before VAT is added. A VAT-inclusive price (also called "gross" or "inc. VAT") includes the VAT in the total. Consumer prices in UK shops are always displayed inclusive of VAT; business-to-business prices are often quoted exclusive of VAT.

Can I use this calculator for invoices?

Yes. This calculator is suitable for calculating VAT amounts for invoices, quotes, receipts, and expense claims. For formal accounting purposes, always verify the applicable VAT rate for your specific goods or services with HMRC guidance or a qualified accountant.