UK VAT
CALCULATOR.
Need to add VAT to a price or work out how much VAT is already included?
Calculate VAT instantly using standard, reduced, zero or custom rates.
Work out VAT-exclusive prices, VAT-inclusive totals, tax amounts, invoice quantities and business VAT estimates.
ADD VAT OR
REMOVE VAT INSTANTLY.
Select whether the amount you're entering includes VAT or excludes VAT.
Choose a VAT rate, enter your price and quantity, and see the breakdown update automatically.
Figures are illustrative. Calculations use the selected rate and round currency amounts to two decimal places. For invoices with multiple lines, discounts, mixed VAT rates or specific HMRC rounding requirements, use appropriate invoicing software or professional guidance.
SEE EXACTLY
WHERE THE MONEY GOES.
This visual shows the VAT-exclusive amount and the VAT element within the total price.
Blue represents the price excluding VAT. Green represents the VAT amount.
ESTIMATE YOUR
VAT ON SALES & PURCHASES.
For a VAT-registered business using the normal VAT accounting method, VAT collected on sales may be offset against eligible recoverable input VAT.
Enter the output VAT on sales and recoverable input VAT on purchases for the same period to calculate a simple net VAT position.
A negative difference may indicate a repayment position, subject to HMRC rules, eligibility and any other adjustments. This tool does not submit VAT returns.
WHAT ARE THE
UK VAT RATES?
The UK has different VAT treatments depending on the product, service and circumstances.
Standard Rate
Applies to most taxable goods and services, including many professional services, electronics and standard retail items.
Reduced Rate
Applies to certain qualifying supplies, such as some domestic energy and eligible products or services.
Zero Rate
Applies to qualifying zero-rated supplies, including many basic foods and certain children's clothing. Zero-rated supplies are still taxable for VAT purposes.
Example: Adding 20% VAT
A business sells a taxable service for £100 excluding VAT.
VAT at 20% is £20.
The customer pays £120 including VAT.
Example: Removing 20% VAT
A product costs £120 including VAT.
Divide £120 by 1.20 to find the VAT-exclusive price: £100.
The VAT element is therefore £20.
You do not remove 20% VAT by simply subtracting 20% from the VAT-inclusive price. Doing that would give the wrong result.
WHY UNDERSTANDING VAT
MATTERS TO YOUR BUSINESS.
Accurate Customer Pricing
Understand the difference between VAT-exclusive and VAT-inclusive prices when preparing quotes.
Better Profit Planning
For VAT-registered businesses, VAT collected from customers generally is not business income to keep.
Invoice Calculations
Work out the VAT element and total value of straightforward invoices using one VAT rate.
Cash Flow Planning
Understand how output VAT and recoverable input VAT can affect the amount owed to HMRC.
Comparing Supplier Prices
Check whether supplier prices are quoted including VAT or excluding VAT.
Business Growth
As turnover changes, review whether VAT registration requirements may apply.
VAT registration thresholds and detailed VAT rules can change. Check current guidance at GOV.UK VAT registration before making registration decisions.
UK VAT CALCULATOR
FAQS.
How do I add 20% VAT?
Multiply the price excluding VAT by 1.20. For example, £100 becomes £120 including VAT.
How do I remove 20% VAT?
Divide the VAT-inclusive price by 1.20. For example, £120 including VAT becomes £100 excluding VAT.
What is the standard UK VAT rate?
The standard UK VAT rate is 20%. Some supplies qualify for reduced, zero-rated or exempt treatment.
How do I calculate 5% VAT?
Multiply a VAT-exclusive amount by 1.05 to add 5% VAT. Divide a VAT-inclusive amount by 1.05 to remove it.
Is zero-rated VAT the same as VAT exempt?
No. Zero-rated supplies are taxable at 0%. Exempt supplies are outside the scope of taxable supplies for VAT purposes, with different implications for input tax recovery.
Can I use a custom VAT rate?
Yes. Select Custom VAT Rate and enter the percentage you want to model. Check whether that rate legally applies before using it on an invoice.
Does the calculator prepare my VAT return?
No. It provides simple arithmetic estimates only. VAT returns may require adjustments and special accounting treatment that this calculator does not include.
Can a business charge VAT if it is not VAT registered?
A business must not charge VAT on its sales unless it is VAT registered and the supply is subject to VAT.
Is this UK VAT calculator free?
Yes. The calculator is free to use without registration or payment.
GET YOUR PRICING RIGHT.
BUILD A STRONGER BUSINESS.
Understanding VAT, pricing and profit is part of running a sustainable business.
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