VAT Calculator UK: Add or Remove VAT Online
Free online VAT calculator for the UK, ready for other countries. Add VAT, remove VAT or find the VAT amount at 20%, 5%, 0% or your own rate. Works for GST and sales tax too. No signup needed.
VAT Calculator
UK first, works worldwide. Add or remove VAT, GST or sales tax.
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VAT Calculator UK: Free Online VAT Calculator to Add or Remove VAT
A price of £120 in a shop already includes £20 of VAT, while a trade quote of £100 plus VAT will also cost you £120. The figures only match once you know whether the VAT is inside the price or still to be added.
This free VAT calculator works in both directions. Add VAT to an amount, remove VAT from a price, or see the VAT on its own at 20%, 5%, 0% or a custom rate. Results update as you type, so there is nothing to submit.
The UK is the main focus, yet the same sums work for VAT in other countries, GST and sales tax.
Below the VAT calculator you will find the formulas, worked examples and answers to common questions. Read as much or as little as you need.
What Is VAT in the UK
VAT, short for Value Added Tax, is a tax on most goods and services sold in the UK. The customer pays it as part of the price. A VAT-registered business collects it and passes it on to HMRC.
A business does not keep the VAT it charges. It pays HMRC the VAT it charged customers, called output tax, minus the VAT it paid on its own purchases, called input tax.
The rates and rules are set by HMRC, and the official list is on GOV.UK. IVA is the Spanish, Italian and Portuguese name for the same tax, so the sums on this page apply there too once you choose the right rate.
Common VAT Terms Explained
| Term | Meaning |
|---|---|
| Net price | The price before VAT is added |
| Gross price | The price with VAT included |
| Standard rate | The main VAT rate, 20% in the UK |
| Zero rated | Taxable, but charged at 0% |
| Exempt | Outside VAT, so no VAT is charged at all |
| Output tax | VAT you charge on your sales |
| Input tax | VAT you pay on your business purchases |
| Taxable turnover | Your sales that are liable to VAT, at any rate including zero |
How the VAT Calculator Works
To add VAT, the VAT calculator multiplies the net price by the rate and adds the result to the net price. To remove VAT, it divides the gross price by one plus the rate, then subtracts the net price from the gross price.
Amounts are handled in pence and each result is rounded to the nearest penny. So £100 including VAT becomes £83.33 net with £16.67 VAT, and the two parts always add back to exactly £100.00.
The rate you pick is shown beside the VAT line, so you can see which rate produced the result. Choose Custom and the VAT calculator accepts any rate from 0 to 100.
How to Use the Online VAT Calculator
Pick Add VAT if you have a price without VAT. Pick Remove VAT if the price already includes it.
Use 20% for most goods and services. Choose 5% or 0% where your item falls under those rates, or choose Custom and type your own.
Enter the price in your chosen currency. The results update as you type, so there is no button to press.
The VAT calculator shows the net price, the VAT and the gross price. Use Clear and start again for the next sum.
Worked Examples: Using the VAT Calculator Step by Step
Three short examples show how to set up the VAT calculator for different jobs. Each takes only a few seconds.
- A freelancer’s quote. You want to charge £2,400 plus VAT. Choose Add VAT, keep 20% and type 2400. The result is £480.00 of VAT and a total of £2,880.00, which is the figure for your invoice.
- A shop receipt. A receipt shows £59.99 including VAT and you want the net cost for your records. Choose Remove VAT, keep 20% and type 59.99. The result is £49.99 net with £10.00 of VAT.
- A supplier invoice from abroad. An Australian supplier bills A$1,650 including GST. Pick Australia in the country shortcut, choose Remove VAT and type 1650. The result is A$1,500.00 net with A$150.00 of GST.
In every case the net price and the tax add up exactly to the gross price. If a result looks wrong, check the mode, the rate and the amount first.
Add and Remove VAT by Hand to Check the VAT Calculator
You can check any result without a VAT calculator. In each formula the rate is written as a decimal, so 20% is 0.2.
| What You Want | Formula | At 20% | At 5% |
|---|---|---|---|
| Gross price from net price | Net × (1 + rate) | Net × 1.2 | Net × 1.05 |
| VAT from net price | Net × rate | Net × 0.2 | Net × 0.05 |
| Net price from gross price | Gross ÷ (1 + rate) | Gross ÷ 1.2 | Gross ÷ 1.05 |
| VAT from gross price | Gross minus Net | Gross ÷ 6 | Gross ÷ 21 |
Adding VAT Without a VAT Calculator
At the standard rate, multiply the net price by 1.2. A £250 net price becomes £300, of which £50 is VAT. At the 5% reduced rate you multiply by 1.05, so £250 becomes £262.50.
Because 20% is one fifth, you can also divide the net price by five to find the VAT. For £1,250 plus VAT, the VAT is £250 and the total is £1,500.
Removing VAT Without a VAT Calculator
To remove VAT, divide the gross price by 1.2. The VAT is then the gross price minus the net price. This is sometimes called a reverse VAT calculation.
The common mistake is to take 20% off the gross price. On £1,000 that leaves £800, which is wrong. Dividing by 1.2 gives £833.33 net and £166.67 VAT, because the 20% belongs to the smaller net price.
At 20% the VAT inside a gross price is one sixth of it, and at 5% it is one twenty-first. Those shortcuts work because 20 divided by 120 is one sixth, and 5 divided by 105 is one twenty-first.
Discounts and VAT: Using the VAT Calculator for Offers
A percentage discount gives the same final price whether you apply it before or after VAT, because both steps are multiplications. For example, 10% off £120 gross is £108, and 10% off £100 net is £90 plus £18 VAT, which is also £108.
A fixed amount off is different. It matters which figure you take it from, as the table shows for a £100 net price.
| Case | Net | Gross |
|---|---|---|
| Starting price | £100.00 | £120.00 |
| £10 off the net price | £90.00 | £108.00 |
| £10 off the gross price | £91.67 | £110.00 |
Taking £10 off the gross price lowers the net by only £8.33, so you give away less. Before you advertise a fixed discount, decide whether it applies to the price with VAT or without it, and say so.
Setting a Shelf Price That Includes VAT: A VAT Calculator Example
Shop prices often end in .99, so you may want to start from the VAT-inclusive figure.
Type £29.99 into the VAT calculator with Remove VAT selected and you get £24.99 net and £5.00 VAT. Adding 20% VAT to £24.99 returns £29.99, so both directions agree.
Not every price works out so neatly. If you start from a round net figure such as £25.00, the gross price is £30.00. Decide which number your customer sees, then let the VAT calculator find the other one.
Rounding on Invoices With Several Lines and the VAT Calculator
Rounding can leave you a penny away from a supplier’s invoice. Take three lines of £1.12 net at 20%. The VAT on each line is £0.224, which rounds to £0.22, so adding the three lines gives £0.66 of VAT.
Now add the lines first. The net total is £3.36, and 20% of £3.36 is £0.672, which rounds to £0.67. It is the same invoice, but the two answers are a penny apart.
| Method | VAT | Total |
|---|---|---|
| Round the VAT on each line | £0.66 | £4.02 |
| Round the VAT on the net total | £0.67 | £4.03 |
Neither is wrong on its own. Pick one method, use it for the whole document and match what your accounting software does. Entering lines one at a time into the VAT calculator follows the first method.
Checking a Supplier Invoice With the VAT Calculator
A quick check can catch an invoice error before you pay. Suppose a bill shows £480.00 net and £90.00 VAT at 20%. Enter 480 in Add VAT and the VAT calculator returns £96.00, so the invoice is £6.00 short on VAT.
Look at four things on any invoice before you enter it in the VAT calculator: the net amount, the rate, the VAT amount and the total.
If one of them does not agree with the others, ask the supplier to correct it before you record the figures.
Price Including VAT and Excluding VAT: Choosing the VAT Calculator Mode
Whether a price shows VAT depends on who it is aimed at. Shops that sell to the public usually show the price with VAT, because that is what the customer pays.
Suppliers selling to other businesses often quote an ex VAT price, because the buyer may be able to reclaim the VAT. Use Add VAT when you start from the ex VAT figure and Remove VAT when you start from the inc VAT figure.
When you compare two quotes, put both on the same basis. A quote of £900 plus VAT is £1,080 in total, so it costs more than a quote of £1,000 that already includes VAT.
UK VAT Rates: Standard, Reduced and Zero
There are three VAT rates in the UK, plus a group of supplies that are exempt. The table gives the idea, but the exact rate for a product depends on how HMRC classes it, so check GOV.UK when you are unsure.
| Rate | Typically Applies To |
|---|---|
| Standard, 20% | Most goods and services, such as electronics, furniture, adult clothing and professional fees |
| Reduced, 5% | A short list that includes domestic fuel and power and children’s car seats |
| Zero, 0% | Most food, books, children’s clothing and public transport. The sale is still taxable, but the rate is nil |
| Exempt | Services such as insurance, education and healthcare. No VAT is charged, and this is different from zero rate |
Zero rated and exempt both mean no VAT on the price, but they are treated differently in a business’s VAT records. Zero-rated sales count towards taxable turnover, and exempt sales do not.
VAT Calculator for Other Countries: EU VAT, GST and Sales Tax
The arithmetic is the same wherever VAT or GST is charged. Use the country shortcut at the top of the VAT calculator to load a rate and a currency symbol, or choose Custom and type any rate from 0 to 100.
The table lists the standard rate in some popular countries. Rates change from time to time, so treat it as a guide and confirm with the local tax authority before you file or invoice.
| Country | Tax | Standard Rate |
|---|---|---|
| United Kingdom | VAT | 20% |
| Ireland | VAT | 23% |
| Germany | VAT | 19% |
| France | VAT | 20% |
| Spain | VAT | 21% |
| Netherlands | VAT | 21% |
| Italy | VAT | 22% |
| United Arab Emirates | VAT | 5% |
| South Africa | VAT | 15% |
| Australia | GST | 10% |
| New Zealand | GST | 15% |
| Singapore | GST | 9% |
| Canada | GST (federal) | 5%, and some provinces add their own tax |
| India | GST | Mainly 18%, with a 5% rate and special rates for some items |
For sales to several countries, run the sum once for each country with its own rate. Cross-border sales within the EU also depend on where the customer is and which local rules apply, which this page does not cover.
Using the VAT Calculator for US Sales Tax
The United States has no national VAT. Most states, and many cities and counties, charge a sales tax on top of the shelf price, and the rate depends on where you are.
Advertised prices usually exclude it, and the tax is added at the till.
Pick United States in the country shortcut and type your local rate into the box that appears.
Add VAT then means add sales tax, and Remove VAT means take the tax out of a receipt total. A total of $108.25 at 8.25% is $100.00 before tax and $8.25 of tax.
One real difference from VAT: sales tax is charged once, to the final customer, while VAT is collected at each stage of the supply chain and businesses reclaim what they paid.
The sum on a single price is identical, but the rules are not. Check your state revenue department for the right rate.
VAT Calculator for Business Invoices and Pricing
Raising an invoice is where a VAT calculator saves the most time. Enter the net amount, choose the rate and copy the net price, the VAT and the total onto your invoice.
A VAT invoice has to make the VAT clear, so show the net amount, the rate, the VAT amount, the total and your VAT registration number. You can build the document with the free Invoice Generator.
The same sums help when you price stock. If a product costs you £40 net and you sell it for £48 including VAT, remove the VAT first.
You are selling at £40 net, so your profit is nothing. Always judge a margin on the net price.
Sole traders, contractors and limited companies all use the same arithmetic. What differs is whether you are VAT registered, which VAT scheme you use and how often you file. The VAT calculator gives you the figures, and your accountant or GOV.UK settles the rules.
Work Out Your VAT Bill: A Return Example
A VAT bill needs only two numbers: the VAT you charged and the VAT you paid. Suppose in one quarter your sales come to £60,000 net and your purchases to £25,000 net, all at 20%.
| Item | Net | VAT at 20% |
|---|---|---|
| Sales (output tax) | £60,000.00 | £12,000.00 |
| Purchases (input tax) | £25,000.00 | £5,000.00 |
| VAT due to HMRC | £7,000.00 |
Where your bills show only a gross total, use Remove VAT on each one to find the VAT inside before you add them up.
If input tax is larger than output tax, the sum comes out the other way round and you may be due a refund.
Generally you need a valid VAT invoice to reclaim input tax, so keep your paperwork. Most VAT-registered businesses file returns online, usually every quarter. Use the VAT calculator while you prepare the figures, but take the final numbers from your accounting software or accountant.
VAT Flat Rate Scheme: The First Step
On the VAT Flat Rate Scheme you pay HMRC a fixed percentage of your VAT-inclusive turnover. This page is not a full flat rate VAT calculator, but it covers the first step: add VAT to your net sales to get your VAT-inclusive turnover.
Then multiply by your flat rate percentage. For example, £10,000 of net sales becomes £12,000 including VAT, and at an illustrative flat rate of 10% the payment would be £1,200.
The 10% is only an example, not your rate. The rules on who can join are on GOV.UK.
VAT Registration and Taxable Turnover
A business has to register for VAT when its taxable turnover goes over the registration threshold in any rolling 12 month period. The threshold can change, so check the current figure on GOV.UK.
Taxable turnover is a running total of your net sales, excluding VAT, over the last 12 months.
If your sales records show VAT-inclusive totals, use Remove VAT in the VAT calculator to get the net figure first, then add the months together. Zero-rated sales count towards the total and exempt sales do not.
Why Use This VAT Calculator: Privacy and Trust
Many online calculators ask for an email address or push you to create an account before they show an answer. This VAT calculator does not. The sums run in your own browser, so the amounts you type are not uploaded to our server.
The VAT calculator never asks for your VAT number, bank details or any personal information. The page is delivered over an encrypted https connection, and like most websites pixapdftools.com may use cookies, for example for analytics.
You can read how in our Privacy Policy and Cookies Policy.
This site is not affiliated with HMRC, so for anything with real money or a deadline attached, confirm the rate on GOV.UK or with an accountant, and read our Disclaimer.
Common Mistakes When You Use a VAT Calculator
- Using Add VAT on a price that already includes VAT. The tax is then added twice. Check the label above the amount box.
- Comparing quotes on different bases. Check whether each one is plus VAT or inc VAT.
- Charging 20% on a zero-rated or exempt item. Check the classification first.
- Working out a margin on a VAT-inclusive price. Strip the VAT out before you judge your profit.
- Using today’s rate on an old invoice. Rates can change, so use Custom to check the rate that applied at the time.
- Mixing rounding methods in one document. Choose one method and keep to it.
Limitations of This VAT Calculator
- Special schemes. The Flat Rate Scheme and similar schemes use their own percentages, so the sum differs from a plain add or remove in the VAT calculator.
- Mixed baskets. If one invoice has items at different rates, calculate each line separately.
- Classification. The VAT calculator cannot tell you which rate applies to a product. That decision belongs to HMRC rules.
- Local rules. Other countries have their own reduced rates, registration limits and invoicing rules. The VAT calculator does the arithmetic only.
- One amount at a time. Nothing is saved, so copy the figures you need before you leave the page.
- Rates change. The country shortcuts load a standard rate. Confirm the rate that applies to you, or choose Custom and type it in.
Troubleshooting the VAT Calculator
The results show £0.00? The VAT calculator is waiting for an amount. Type a number in the amount box.
An error message appears? The amount must be a plain positive number, and a custom rate must be between 0 and 100.
The VAT calculator total looks lower than expected when removing VAT? Check that Remove VAT is selected and that the amount you typed already includes VAT.
The currency symbol is wrong? Change the currency box next to the country list. It only changes how the results are displayed.
The result is a penny out from your invoice? See the section on rounding above.
Frequently Asked Questions
What is the VAT rate in the UK?
The standard UK VAT rate is 20% and covers most goods and services. A reduced rate of 5% applies to items such as domestic fuel and power, and a zero rate to most food, books and children’s clothing. Check GOV.UK for current rates.
How do I add 20% VAT to a price?
Multiply the net price by 1.2. For example, 100 pounds plus VAT is 120 pounds, of which 20 pounds is VAT. The VAT calculator does this sum for you.
How do I take VAT off a price that already includes it?
Divide the gross price by 1.2 for the net price, then subtract it from the gross price to find the VAT. Never take 20% off the gross price, because that removes too much. The VAT calculator does this when you choose Remove VAT.
Is the online VAT calculator really free?
Yes. The VAT calculator is free to use. There is no account to create, no email address to give and no fee.
Is my data sent anywhere?
No. The sums run in your browser, so the numbers you type stay on your device and are not sent to our server.
Can I use a rate other than 20%, 5% or 0%?
Yes. Pick a country shortcut or choose Custom and type any rate from 0 to 100. This works for VAT in other countries, for GST and for US sales tax, and it is useful for checking an old invoice.
Can I use this VAT calculator outside the UK?
Yes. The sum is the same for VAT, GST or sales tax in any country. Choose a country shortcut such as Ireland, Germany, Australia or the UAE, or choose Custom and type your own rate, and check it with your local tax authority.
What is the difference between VAT and sales tax?
VAT is collected at every stage of the supply chain, while sales tax is charged once, at the final sale. For a single price the sum is the same.
How do I work out my VAT bill?
Subtract the VAT you paid on business purchases, called input tax, from the VAT you charged on sales, called output tax. If the result is positive you owe it to HMRC. If it is negative you may be due a refund.
Is VAT different in Scotland, Wales or Northern Ireland?
VAT is a UK-wide tax, and the standard, reduced and zero rates are the same in England, Scotland, Wales and Northern Ireland. Northern Ireland has special rules for some trade in goods with the EU, so check GOV.UK if that applies to you.
When do I have to register for VAT?
A business must register once its taxable turnover goes over the registration threshold in a rolling 12 month period. Check the current threshold on GOV.UK, because it can change.
Why is my total a penny different from my invoice?
The calculator rounds each result to the nearest penny. An invoice with several lines may add VAT per line or on the whole total, and the two methods can differ by a penny. Follow the method your accounting software uses.
Final Thoughts on the VAT Calculator
A good VAT calculator does one job clearly. It adds VAT, removes VAT and shows the net price, the VAT and the gross price together, so you can copy each figure where it belongs.
Use the VAT calculator for the arithmetic, and use GOV.UK or an accountant for the rules. Check the mode and the rate before you press on, and keep the same rounding method throughout a document.