VAT Calculator - Online

The online VAT calculator computes VAT (Value-Added Tax) for your business. It can add or remove VAT from a price with ease.

The current standard VAT rate in the UK is 20%.

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# Net Amount VAT Rate VAT Amount Gross Amount

What is a Value-Added Tax (VAT)?

The VAT (value-added tax) is a consumption tax added to the price of goods and services at each stage of the supply chain. It's applied from production to the point of sale. Each business in the supply chain collects VAT on its sales and passes it along the supply chain.

More than 160 countries use the VAT system, and it is most commonly found in the UK and the European Union (EU).

VAT is different from income tax or corporation tax. Instead of being based on earnings, VAT is linked to spending.

What are the VAT Rates in the UK?

There are three main VAT rates in the UK:

  1. Standard Rate (20%): It's the default rate that applies to most goods and services.
  2. Reduced Rate (5%): This rate applies to certain goods and services, such as children's car seats, fuel, and some health products.
  3. Zero Rate (0%): It includes most food and drink items, children's clothing, books, plants and seeds, and animal feeding products.

Some goods and services are exempt from VAT altogether, including:

  • Financial and Insurance Services
  • Education and Training
  • Medical Services

Note: Zero-rated and exempt are not the same. Exempt means no VAT is charged, and you can't reclaim VAT on the cost. On the other hand, zero-rated sales still count towards VAT registration thresholds.

How Does the VAT Calculator Work?

  1. First, input the amount to which the VAT needs to be added or removed.
  2. Input the percentage rate of VAT. In the UK, the current standard VAT rate is 20%. So, it's set to 20%. But you can change it if required.
  3. Now press the 'Add VAT' button to get the price including VAT, and press the 'Remove VAT' button to get the price excluding VAT.
  4. The tool returns the Net amount, VAT rate, VAT amount, and Gross amount in table form. Each calculation will be displayed in the table row.
  5. To refresh the calculator, press the 'Reset All' button.

How to Add VAT to a Net Price?

The following formula is used to find the total price including VAT based on the Net price.

Total Price = Net Price + ( Net Price × VAT Rate )

Example:

Suppose the Net price is £117, and the VAT rate is 20%. Calculate the price including tax.

Solution:

First, convert the VAT rate into a decimal.

VAT Rate = 20 / 100 = 0.20.

Now put the values in the formula.

Total Price = £117 + ( £117 × 0.20 ) = £117 + £23.40 = £140.40.

Calculating VAT Amount

VAT Amount = Net Price × VAT Rate.

VAT Amount = £117 × 0.20 = £23.40.

There is one more formula to get the price including VAT.

Total Gross Price = Net Price × ( 1 + VAT Rate )

Example:

Net price = £244 and VAT rate = 20%. Find the Gross price.

Solution:

Total Gross Price = £244 × ( 1 + 0.20 ) = £244 × 1.20 = £292.80.

VAT Amount = £244 × 0.20 = £48.80.

How to Remove VAT from a Gross Price?

The following formula is used to find the Net price (price before VAT) based on the Gross price.

Net Price = Total Gross Price / ( 1 + VAT Rate )

Example:

Suppose the Gross price is £289, and the VAT rate is 20%. Calculate the price before tax.

Solution:

Net Price = £289 / ( 1 + 0.20 ) = £289 / 1.20 = £240.83.

VAT Amount = £289 - £240.83 = £48.17.

FAQs

Yes, it's designed specifically for UK VAT rules, including:

  • UK VAT rates
  • UK pricing formats (£)
  • Common UK use cases
  • HMRC-style calculations

It's ideal for residents, businesses, and anyone dealing with VAT.

You must register for VAT if your VAT-taxable turnover exceeds £90,000 in a rolling 12-month period (as of current UK rules).

Even if you're below the threshold, you can voluntarily register, which may be beneficial if:

  • You want to reclaim VAT on expenses.
  • Your customers are VAT-registered businesses.

There are several advantages to using a calculator instead of manual calculations:

  • Fast and accurate results.
  • No maths skills required.
  • Works for all UK VAT rates.
  • Reduces accounting errors.
  • Useful for both businesses and individuals.

It's especially helpful during VAT returns when accuracy matters most.

The Net price is the amount before VAT is added. The Gross price is the total amount after VAT has been included.

Adding VAT
  • VAT = Net amount × VAT rate
  • Total = Net amount + VAT
Removing VAT
  • Net amount = Gross amount / (1 + VAT rate)
  • VAT = Gross amount - Net

For example, with 20% VAT:

  • Divide by 1.2 to remove VAT
  • Multiply by 1.2 to add VAT

If you're VAT-registered, you can usually reclaim VAT on eligible business expenses.

It depends on the country, customer type, and product or service. VAT rules differ for EU and non-EU customers.

Yes, delivery charges usually follow the same VAT rate as the item sold.

Mandatory service charges are usually subject to VAT. Voluntary tips given directly to staff are normally outside the scope of VAT.

Yes, but special VAT schemes may apply, such as the Margin Scheme for second-hand goods. Under these schemes, VAT is calculated on the profit margin rather than the full selling price.