VAT Calculator

ByCalculators Online
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VAT Calculator

Instantly calculate VAT from net amounts, extract VAT from gross totals, and estimate your VAT return figures using current HMRC rates.

💷 Standard, Reduced & Zero Rates
🔄 Net to Gross & Gross to Net
🧾 VAT Return Estimation
🔒 100% Free & Private
Free UK Tax Tool

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.

£0.00
Net Amount
£0.00
VAT Amount
£0.00
Gross Amount
*Calculations are based on the selected VAT rate. For VAT returns, ensure you are using the correct rate for each specific good or service as defined by HMRC.

VAT Recording Checklist

Best practices for your VAT records.

✓
Valid VAT Invoices: Ensure all purchase invoices you claim back on contain your business name, VAT number, and the supplier’s VAT number.
✓
Correct Rates: Double-check that you are applying the correct rate (20%, 5%, or 0%) to the right goods and services. Misclassification is a common HMRC error.
✓
Flat Rate Scheme: If you are on the Flat Rate Scheme, do not use this calculator for your return. You simply apply your specific flat rate percentage to your gross turnover.
✓
Digital Records: Under Making Tax Digital (MTD), you must keep digital records of your VAT transactions and use MTD-compatible software to submit your returns.

How the Math Works

Understanding VAT calculations

1

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.

2

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.

3

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.

Quick Reference Guide

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
1Standard Rate 20% 1/6th Most goods and services, electronics, clothing, professional services.
2Reduced Rate 5% 1/21st Domestic fuel and power, children’s car seats, sanitary products, mobility aids.
3Zero Rate 0% N/A Most food, children’s clothing, books, newspapers, public transport.
4Exempt N/A N/A Insurance, postage stamps, property leases, finance. (Cannot register for VAT or reclaim input tax).
⚠️ Important Notice: VAT rules can be complex, and some items have specific conditions or exceptions. Always refer to the official HMRC VAT Notice 700 series or consult a qualified accountant if you are unsure about the correct rate for your supplies.
Common Questions

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.

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