Free UK VAT Calculator
Work out UK VAT on any amount. Add it to a price that's exclusive of VAT, or pull it out of an inclusive one. See the net, the VAT and the gross total on the current UK rates.
at 20% on £1,000.00
- Net amount
- £1,000.00
- VAT (20%)
- £200.00
- Gross amount
- £1,200.00
Estimates for quick checks and quotes. Confirm the rate for your goods or services before invoicing.
Work out VAT in four steps.
The calculator works out VAT on any amount: the net, the VAT itself, and the gross total. Use it on a price that's exclusive of VAT to add the tax, or on one that's inclusive of VAT to pull the tax out.
Enter your amount
Type the figure you want to work with: a price before VAT, or one that already includes it.
Exclusive or inclusive
Pick 'Exclusive' when your amount is before VAT and you want to add it on. Pick 'Inclusive' when your amount already includes VAT and you want to pull it out.
Choose the VAT rate
Tap 20% for the standard rate, 5% for the reduced rate, or 0%. You can also enter a custom percentage.
Read the breakdown
The net amount, the VAT, and the gross total all update as you type.
How the VAT maths works.
VAT exclusive
Your price is before VAT, so VAT goes on top.
VAT = (Amount × Rate) ÷ 100
Gross = Amount + VAT
Example: £500 plus 20% VAT is £100 VAT, so £600 gross. At 20% you can just multiply by 1.2.
VAT inclusive
Your amount already includes VAT, like a shelf price.
Net = Amount ÷ (1 + Rate ÷ 100)
VAT = Amount - Net
Example: £600 including 20% VAT is £500 net and £100 VAT. At 20% the VAT is one sixth of the gross.
The UK VAT rates.
Most sales are standard-rated at 20%. A reduced rate of 5% and a zero rate of 0% cover specific goods and services, and some supplies are exempt from VAT altogether.
| Rate | Band | Typically applies to |
|---|---|---|
| 20% | Standard rate | Most goods and services, including electronics, professional and digital services, hospitality, alcohol and adult clothing. |
| 5% | Reduced rate | Domestic gas and electricity, children's car seats, mobility aids for older people, and nicotine replacement products. |
| 0% | Zero rate | Most food and drink, books and newspapers, children's clothes and shoes, prescription medicines and public transport. |
| No VAT | Exempt | Insurance, finance and credit, education and training, some health services and postage stamps. Not the same as zero-rated. |
Examples are for guidance only. The rate for any item depends on its category, so check the gov.uk VAT rates guidance or ask your accountant. The VAT registration threshold is £90,000 of taxable turnover.
How VAT works.
VAT is collected along the chain and settled with HMRC. You charge it on sales, reclaim it on purchases, and pay the difference each quarter.
The VAT you charge your customers on the things you sell.
The VAT you pay on business purchases, which you can usually reclaim from HMRC.
You pay HMRC the difference between the VAT you collected and the VAT you paid, usually every three months.
VAT-registered businesses have to keep digital records and file returns through MTD-compatible software.
Software that handles VAT and MTD for you.
This tool is handy for a one-off number. But once you're VAT-registered, you have to keep digital records and file returns through Making Tax Digital. We build the billing, ERP and accounting software that tracks VAT on every invoice, reclaims input VAT, and files cleanly, shaped around how your business works.
Running sales too? See Tilarq CRM.
Common VAT questions.
It's a free online tool that works out UK Value Added Tax on any amount. You enter a price, choose the VAT rate, and it shows the net amount, the VAT, and the gross total. It works both ways, so you can add VAT to a price or pull it out of a VAT-inclusive one.
Multiply the net price by the VAT rate and divide by 100, then add it on. At the standard 20% rate there's a shortcut: just multiply by 1.2. So £500 plus 20% VAT is £600.
Divide the gross price by 1 plus the rate. At 20% that means dividing by 1.2, so £600 becomes £500 and the VAT is £100. Set the calculator to 'Inclusive' and it does this for you.
There are three: the standard rate of 20% on most goods and services, a reduced rate of 5% on things like domestic fuel and children's car seats, and a zero rate of 0% on most food, books and children's clothing. Some supplies, such as insurance and finance, are exempt rather than rated.
You have to register for VAT once your VAT-taxable turnover goes over £90,000 in any rolling 12-month period, or if you expect to pass it within the next 30 days. The £90,000 threshold has applied since April 2024. You can also register voluntarily below it.
Both mean no VAT is charged to the customer, but they are not the same. Zero-rated sales are taxable at 0%, so you can still reclaim the VAT on your own purchases. Exempt sales sit outside VAT, so you cannot reclaim the input VAT linked to them.
It's a quick way to find the VAT already inside a gross price. At 20% the VAT fraction is 1/6, so the VAT in a £600 gross price is £600 ÷ 6 = £100. At the 5% rate the fraction is 1/21.
A VAT-exclusive price is the net amount before tax, so VAT is added on top. A VAT-inclusive price already contains the VAT, so you work backwards to find the net. Retail prices shown to consumers are usually VAT-inclusive.
Most goods and services are standard-rated at 20%. Some are reduced-rated, zero-rated or exempt. Check the category for your product in the gov.uk VAT rates guidance, or with your accountant, before you invoice.
Yes on both. It's free, there's no sign-up, and it runs entirely in your browser. Nothing you type is sent anywhere or saved, so your figures stay on your own device.
It's meant for quick estimates: checking a quote, a bill, or a price before you invoice. VAT-registered businesses have to keep digital records and file under Making Tax Digital, which needs MTD-compatible software. That's the kind of software we build at Techliphant if you need it.
Working backwards means finding the VAT inside a gross price. Divide the gross by 1 plus the rate to get the net, then take that off to find the VAT. At 20%, £120 ÷ 1.2 = £100 net and £20 VAT. The 'Inclusive' setting does this automatically.
Disclaimer: This VAT calculator is free and meant for general estimates and learning. VAT rates and rules change, and the right treatment depends on the goods or services and where they are supplied. None of this is tax, legal or accounting advice. Check any figures against the official gov.uk and HMRC resources, or with a qualified professional, before you rely on them for invoices, returns or contracts.
Ready when you are
Let's build something exceptional.
Tell us about your business, your stack, and the problem you are trying to solve. We respond with a clear next step usually a 30-minute discovery call, no fluff.