UK VAT Calculator
Instantly add or remove VAT from any amount. Calculate net, gross, and VAT figures accurately for invoices, receipts, and bookkeeping.
Calculate VAT Amounts
Enter your amount, select whether you want to add or remove VAT, and choose the applicable rate to see the breakdown instantly.
VAT Estimator
Quickly split gross amounts or add tax to net figures.
How VAT Calculation Works
The math behind UK Value Added Tax
Adding VAT (Net to Gross)
Multiply the net amount by the VAT rate (as a decimal) to find the VAT amount, then add it to the net.
Formula: Net × (1 + Rate)
Removing VAT (Gross to Net)
Divide the gross amount by (1 + VAT rate) to find the net amount. The VAT is the difference between gross and net.
Formula: Gross ÷ (1 + Rate)
The 20% Multiplier
For the standard 20% rate, adding VAT means multiplying by 1.20. Removing VAT means dividing by 1.20.
Invoicing Compliance
HMRC requires VAT invoices to clearly show the net amount, the VAT rate applied, the VAT amount, and the gross total.
Current UK VAT Rates
A general overview of the three main VAT rates in the UK and examples of goods and services that fall into each category.
| VAT Rate | Percentage | Common Examples | Calculation Multiplier |
|---|---|---|---|
| Standard Rate | 20% | Most goods and services, electronics, clothing, professional services | Net × 1.20 | Gross ÷ 1.20 |
| Reduced Rate | 5% | Domestic fuel and power, children’s car seats, sanitary products, mobility aids | Net × 1.05 | Gross ÷ 1.05 |
| Zero Rate | 0% | Most food, books, newspapers, children’s clothes, public transport | Net = Gross |
| Exempt | N/A | Insurance, postage stamps, property leases, finance services | No VAT charged or reclaimed |
| VAT Threshold | You must register for VAT if your taxable turnover exceeds £90,000 in a rolling 12-month period. | ||
VAT Calculator FAQ
Answers to the most frequently asked questions about UK VAT calculations, rates, and HMRC rules.
To add 20% VAT to a net amount, multiply the net amount by 1.20. For example, £100 net + 20% VAT = £120 gross. The VAT amount itself is £20.
To remove 20% VAT from a gross amount, divide the gross amount by 1.20. For example, £120 gross ÷ 1.20 = £100 net. The VAT included in that total is £20. Do not simply subtract 20%, as this will give an incorrect result.
The UK has three main VAT rates: the Standard Rate of 20% (most goods and services), the Reduced Rate of 5% (e.g., domestic fuel, children’s car seats), and the Zero Rate of 0% (e.g., most food, books, children’s clothes). Some services are also VAT-exempt.
You must register for VAT with HMRC if your taxable turnover exceeds the VAT threshold, which is currently £90,000 over a rolling 12-month period. You can also register voluntarily if your turnover is below this limit, which allows you to reclaim VAT on business purchases.