VAT Calculator

To add VAT to a net (ex-VAT) price, multiply the net amount by 1 plus the VAT rate as a decimal. For example, with a 20% VAT rate: £100 × 1.20 = £120 gross. The VAT amount itself is £20.

To extract VAT from a gross (inc-VAT) price, divide the gross amount by 1 plus the VAT rate as a decimal. For 20% VAT: £120 ÷ 1.20 = £100 net. The VAT amount is £120 − £100 = £20.

The standard UK VAT rate is 20%. A reduced rate of 5% applies to certain goods and services such as home energy and children's car seats. Some items are zero-rated (0%), including most food and children's clothing.

The net price is the price before VAT is added — it is what the seller receives excluding tax. The gross price is the total amount the buyer pays, including VAT. The difference between the two is the VAT amount.

Yes. Simply enter the VAT rate that applies in your country. For example, the EU average is around 21%, Germany uses 19%, and some countries use rates as low as 5% or as high as 27% (Hungary). The calculator works for any percentage you enter.

They are similar but not identical. VAT is collected at each stage of the supply chain (production, wholesale, retail), with businesses reclaiming VAT paid on their inputs. Sales tax is typically only applied at the final point of sale to the consumer. The end result for the consumer is comparable.

Value Added Tax (VAT) is a consumption tax levied on goods and services at each stage of production and distribution. Governments use VAT revenue to fund public services such as healthcare, education, and infrastructure.

No. In the UK, businesses must register for VAT only when their taxable turnover exceeds the VAT registration threshold (currently £90,000 per year). If your turnover is below this threshold, you are not required to charge or collect VAT.