VAT Calculator
Instantly calculate VAT from net amounts, extract VAT from gross totals, and estimate your VAT return figures using current HMRC rates.
Calculate Your VAT Amounts
Enter your amount and select whether it is VAT exclusive (net) or VAT inclusive (gross) to instantly see the broken-down figures.
VAT Estimator
Add or extract VAT from your figures.
VAT Recording Checklist
Best practices for your VAT records.
How the Math Works
Understanding VAT calculations
Adding VAT (Net to Gross)
Multiply the net amount by the VAT rate (e.g., 0.20). Add this result to the net amount to get the gross total.
Example: £100 × 0.20 = £20 VAT. £100 + £20 = £120 Gross.
Extracting VAT (Gross to Net)
Divide the gross amount by (1 + VAT rate). For 20%, divide by 1.20. This gives the net amount. Subtract the net from the gross to find the VAT.
Example: £120 ÷ 1.20 = £100 Net. £120 – £100 = £20 VAT.
The 20% VAT Fraction
A quick mental math trick for 20% VAT: the VAT fraction is 1/6th. To extract VAT from a gross amount, simply divide the gross amount by 6.
Current UK VAT Rates
A summary of the three main VAT rates in the UK and common examples of what they apply to.
| VAT Rate | Percentage | VAT Fraction | Common Examples |
|---|---|---|---|
| Standard Rate | 20% | 1/6th | Most goods and services, electronics, clothing, professional services. |
| Reduced Rate | 5% | 1/21st | Domestic fuel and power, children’s car seats, sanitary products, mobility aids. |
| Zero Rate | 0% | N/A | Most food, children’s clothing, books, newspapers, public transport. |
| Exempt | N/A | N/A | Insurance, postage stamps, property leases, finance. (Cannot register for VAT or reclaim input tax). |
VAT Calculator FAQ
Answers to the most frequently asked questions about calculating VAT, HMRC rates, and VAT returns.
To calculate VAT from a net (exclusive) amount, multiply the net amount by the VAT rate (e.g., 0.20 for 20%). Add this VAT amount to the net amount to get the gross (inclusive) total. For example, £100 net + 20% VAT (£20) = £120 gross.
To extract VAT from a gross (inclusive) amount, divide the gross amount by (1 + VAT rate). For a 20% VAT rate, divide the gross amount by 1.20 to find the net amount. Then, subtract the net amount from the gross amount to find the VAT. For example, £120 gross ÷ 1.20 = £100 net. VAT is £120 – £100 = £20.
The UK has three main VAT rates: the Standard Rate at 20% (most goods and services), the Reduced Rate at 5% (e.g., domestic fuel, children’s car seats), and the Zero Rate at 0% (e.g., most food, children’s clothing, books).
You must register for VAT with HMRC if your VAT-taxable turnover exceeds £90,000 in a 12-month period, or if you expect it to exceed this threshold in the next 30 days. You can also register voluntarily if your turnover is below this limit, which allows you to reclaim VAT on business purchases.