VAT Calculator UK

Quickly add or remove VAT using the standard UK rate (20%) or any custom VAT rate. Enter an amount below, choose whether to add or remove VAT, and instantly see a complete breakdown.

✔ Add or remove VAT • ✔ UK VAT rates • ✔ Business & personal use • ✔ Instant results

What this VAT calculator does

This VAT Calculator helps you quickly add VAT to a price or remove VAT from a VAT-inclusive amount. It is useful for businesses, self-employed workers, online sellers, freelancers, contractors, and anyone who needs accurate UK VAT calculations.

Whether you are preparing invoices, checking receipts, pricing products, or verifying tax amounts, this calculator provides fast and accurate results.

What is VAT?

VAT (Value Added Tax) is a consumption tax charged on most goods and services sold in the United Kingdom. Businesses collect VAT on behalf of HM Revenue & Customs (HMRC).

The standard UK VAT rate is currently 20%, although some goods and services may qualify for reduced rates or zero-rated treatment.

Current UK VAT rates

Rate	Description
20%	Standard VAT rate applied to most goods and services.
5%	Reduced rate for certain qualifying goods and services.
0%	Zero-rated items such as most food products and children's clothing.

How VAT is calculated

To add VAT:

VAT Amount = Net Price × VAT Rate

Total Price = Net Price + VAT Amount

To remove VAT:

Net Price = Gross Price ÷ (1 + VAT Rate)

VAT Amount = Gross Price − Net Price

Step-by-step examples

Example 1: Adding VAT

• Original Price: £100
• VAT Rate: 20%
• VAT Amount: £20
• Total Price: £120

A product costing £100 before VAT will cost £120 after 20% VAT is added.

Example 2: Removing VAT

• VAT-Inclusive Price: £120
• VAT Rate: 20%
• Original Price: £100
• VAT Amount: £20

If a receipt shows £120 including VAT, the original price before VAT was £100.

Example 3: Business Invoice

• Service Fee: £750
• VAT Rate: 20%
• VAT Amount: £150
• Total Invoice: £900

This example shows how VAT is commonly added to business invoices in the UK.

Common VAT amounts

Net Price	20% VAT	Total Price
£50	£10	£60
£100	£20	£120
£250	£50	£300
£500	£100	£600
£1,000	£200	£1,200

Who uses VAT calculators?

• Small business owners.
• Freelancers and contractors.
• Online sellers.
• eBay and marketplace traders.
• Accountants and bookkeepers.
• Consumers checking receipts.
• Anyone comparing prices before and after VAT.

Common mistakes people make

• Adding VAT twice by mistake.
• Using the wrong VAT rate.
• Calculating VAT from the VAT-inclusive price incorrectly.
• Confusing VAT amount with total price.
• Forgetting to include VAT when preparing invoices.

This calculator helps avoid these errors by performing the calculations automatically.

Frequently Asked Questions

What is the standard UK VAT rate?
The standard VAT rate is currently 20%.

Can I use a custom VAT rate?
Yes. The calculator allows you to enter any VAT percentage.

How do I remove VAT from a price?
Enter the VAT-inclusive amount and select the remove VAT option.

Can businesses reclaim VAT?
VAT-registered businesses may be able to reclaim VAT on qualifying purchases, subject to HMRC rules.

Is this calculator suitable for invoices?
Yes. It can be used to estimate VAT amounts for quotations, invoices, receipts, and pricing calculations.

Sources & References

Information on this page is based on publicly available guidance, official government publications, and commonly accepted financial calculation methods.

• HM Revenue & Customs (HMRC)
• UK Government Guidance
• Bank of England
• Financial Conduct Authority (FCA)
• MoneyHelper (UK)
• UK Land Registry

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