United Kingdom VAT Calculator

This VAT calculator works out the tax on any amount using current UK rates. Type in a net price to add VAT, or type in a gross price to strip it out. It covers the standard 20%, the 5% reduced rate and the 0% zero rate.

All calculations happen in your browser — nothing is sent anywhere. The precise-value mode gives you up to twelve decimal places, which can be useful when you are working with large invoices or multi-line spreadsheets where rounding differences add up.

How to use the calculator

1. Pick the VAT rate that applies. For most goods and services in the UK that is 20%.
2. Type the amount in either field — net (without VAT) or gross (with VAT). The other field will stay empty; the calculator uses whichever one you fill in.
3. The result appears straight away. You get the opposite figure plus the VAT portion.
4. Use the copy button next to each result to paste it into a spreadsheet, invoice or accounting package.

What is VAT?

Value Added Tax is a consumption tax charged on most goods and services sold in the United Kingdom. It was introduced on 1 April 1973 and is collected by HMRC. Businesses that are VAT-registered charge it on their sales and can reclaim the VAT they pay on business purchases. The end consumer bears the final cost.

VAT is charged at each stage of the supply chain, but only on the value added at that stage. A manufacturer pays VAT on raw materials, charges VAT when selling to a wholesaler, and reclaims the difference. This avoids the "tax on a tax" problem that older turnover taxes had.

UK VAT Rates in 2025^[1]

Standard rate — 20%

Applies to most goods and services. This is the default rate and the one you will use most often. It has been 20% since January 2011.

Reduced rate — 5%

Covers a specific list of items, including:

• Domestic gas and electricity
• Child car seats
• Certain energy-saving materials installed in homes
• Sanitary products
• Smoking cessation products

Zero rate — 0%

The goods are still technically taxable, which matters because the seller can reclaim input VAT. Zero-rated items include:

• Most food and drink (but not catering, hot takeaways, alcohol, confectionery, crisps, or soft drinks)
• Children's clothing and shoes
• Books, newspapers and magazines
• Public transport
• New-build residential property

VAT-exempt

Some goods and services are outside the VAT system entirely. Exempt items include financial services, insurance, education, health services provided by registered practitioners, and postal services from Royal Mail. Unlike zero-rated sales, exempt sales do not let the seller reclaim input VAT.

VAT Calculation Formulas Used in the UK

Adding VAT to a net price

Example at 20%: £100 × 1.20 = £120. The VAT portion is £20.

Removing VAT from a gross price

Example at 20%: £120 ÷ 1.20 = £100. The VAT portion is £20.

Finding the VAT amount from a gross price

Example at 20%: £120 × 20 ÷ 120 = £20.

At the 5% reduced rate

Net £100 → VAT £5 → Gross £105.

Gross £105 ÷ 1.05 = £100 net.

VAT Registration in the UK^[2]

You must register for VAT if your taxable turnover exceeds £90,000 in any rolling twelve-month period. This threshold was raised from £85,000 in April 2024. You can also register voluntarily below the threshold, which some businesses do to reclaim input VAT on their purchases.

Once registered, you charge VAT on your sales, submit VAT returns (usually quarterly) and pay the difference between what you have charged and what you have reclaimed to HMRC.

VAT Flat Rate Scheme

If your VAT-taxable turnover is £150,000 or less you can apply for the Flat Rate Scheme. Instead of running every invoice through a VAT calculation, you pay a fixed percentage of your gross turnover to HMRC. The percentage depends on your trade — for example, it is 14.5% for computer and IT consultancy and 12% for retailing food or confectionery.

The scheme simplifies record-keeping because you do not need to track VAT on every individual purchase. However, you generally cannot reclaim VAT on purchases (except capital assets over £2,000 including VAT).

Making Tax Digital for VAT^[3]

Since April 2022 all VAT-registered businesses must keep digital records and file VAT returns using compatible software. This is part of HMRC's Making Tax Digital programme. You can no longer submit returns manually through the HMRC website.

Compatible software packages range from free tools to full accounting suites. HMRC publishes a list of approved software on GOV.UK. If you use spreadsheets, you need bridging software that can submit the return digitally.

Frequently Asked Questions

How do I add VAT to a price?

Multiply the net amount by 1.20 for the standard rate. For example, £250 × 1.20 = £300. The VAT is £50. For the 5% rate, multiply by 1.05. Or type the net figure into the calculator above and it does the maths for you.

How do I remove VAT from a price?

Divide the gross amount by 1.20 for the standard rate. For example, £300 ÷ 1.20 = £250 net. A common mistake is to simply subtract 20% from the gross — that gives you the wrong answer because 20% of £300 is £60, not £50.

What is the difference between zero-rated and exempt?

Both mean no VAT is charged to the customer. The difference is in the background. Zero-rated goods count as taxable supplies, so the seller can reclaim input VAT. Exempt goods do not count as taxable supplies, so the seller cannot reclaim input VAT on related costs.

Do I charge VAT to customers outside the United Kingdom?

For business-to-business services to overseas customers, you generally do not charge UK VAT — the customer accounts for tax under the reverse charge in their own country. For goods exported outside the United Kingdom, the supply is zero-rated provided you hold evidence of export. The rules differ depending on whether the customer is in the EU, Northern Ireland or elsewhere.

When are VAT returns due?

Most businesses file quarterly. The return and payment are due one calendar month and seven days after the end of the VAT period. For example, a quarter ending 31 March would have a deadline of 7 May. If you pay by direct debit, HMRC collects payment three working days after the deadline.

What happens if I go over the VAT threshold?

You must register within 30 days of the end of the month in which you exceeded the £90,000 threshold. HMRC will then issue a VAT registration number. From that date you must charge VAT on your sales. Late registration can result in a penalty.

Can I reclaim VAT on purchases made before registration?

Yes, within limits. You can reclaim VAT on goods bought up to four years before registration, provided the goods are still on hand at the date of registration. For services, the limit is six months. You need valid VAT invoices to support the claim.

Why use an online VAT calculator instead of doing it by hand?

The maths is simple enough, but mistakes creep in when you are processing dozens of line items or switching between net and gross figures. A calculator removes the rounding errors and saves time — especially if you need the precise figure to twelve decimal places for reconciliation.