VAT Calculator
Add or Remove VAT ⚡
Instantly add VAT to a net price or remove VAT from a gross price. Supports standard (20%), reduced (5%) and zero (0%) UK VAT rates.
Instantly add VAT to a net price or remove VAT from a gross price. Supports standard (20%), reduced (5%) and zero (0%) UK VAT rates.
Value Added Tax (VAT) is a consumption tax applied to most goods and services sold in the UK. The standard rate is 20%, with a reduced rate of 5% for certain goods such as home energy and children's car seats, and a zero rate (0%) for essentials like food and children's clothing. Businesses registered for VAT must charge it on sales and can reclaim it on eligible purchases.
Multiply the net (ex-VAT) amount by 1 plus the VAT rate as a decimal.
Formula: Gross = Net × (1 + VAT Rate ÷ 100)
Example: £100 + 20% VAT = £100 × 1.20 = £120
Divide the gross (inc-VAT) amount by 1 plus the VAT rate as a decimal.
Formula: Net = Gross ÷ (1 + VAT Rate ÷ 100)
Example: £120 ÷ 1.20 = £100 net, £20 VAT
What is the current UK VAT rate?
The standard rate is 20%. The reduced rate is 5% and applies to things like home energy and children's car seats. A 0% rate applies to most food, books, and children's clothing.
Do I need to register for VAT?
You must register for VAT if your taxable turnover exceeds £90,000 in a 12-month period (as of 2024). You can also register voluntarily below this threshold.
Can I reclaim VAT?
VAT-registered businesses can reclaim the VAT they pay on business purchases, known as input tax, by offsetting it against the VAT they charge customers (output tax).