Enter an amount and VAT rate, choose whether to add VAT to a net price or remove VAT from a gross price, and this VAT Calculator returns your VAT amount, net (ex VAT), and gross (inc VAT) figures side by side. Works for UK standard (20%), reduced (5%), and any custom rate worldwide.
VAT Amount
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Net Amount (ex VAT)
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Gross Amount (inc VAT)
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VAT Rate Applied
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To add VAT, multiply the net amount by 1 plus the VAT rate as a decimal. For example, for 20% VAT: £100 × 1.20 = £120 gross. The VAT amount itself is £20. Use the 'Add VAT' option in the calculator above.
To extract VAT from a gross price, divide the gross amount by 1 plus the VAT rate. For 20% VAT: £120 ÷ 1.20 = £100 net. The VAT portion is £120 − £100 = £20. Select 'Remove VAT' in the calculator to do this automatically.
The UK has three main VAT rates: the standard rate of 20% (applies to most goods and services), the reduced rate of 5% (applies to items like home energy and children's car seats), and the zero rate of 0% (applies to most food, children's clothing, and books). Some goods and services are VAT-exempt entirely.
In the UK, you must register for VAT if your taxable turnover exceeds the VAT registration threshold (currently £90,000 in a rolling 12-month period as of 2024). You can also register voluntarily below this threshold, which lets you reclaim VAT on business purchases.
The net amount is the price before VAT is added — it's the base price excluding tax. The gross amount is the total price including VAT — this is what the customer pays. The difference between the two is the VAT amount.
Yes. While the default is set to the UK standard rate of 20%, you can select 'Custom rate' and enter any VAT or sales tax percentage that applies in your country. Common rates globally range from 5% (Canada GST) to 27% (Hungary). The calculation method is the same regardless of the rate.
VAT (Value Added Tax) is collected at each stage of the supply chain — manufacturers, wholesalers, and retailers all charge and reclaim VAT, with only the final consumer bearing the cost. Sales tax, used in the US for example, is only applied at the final point of sale. The end result for the consumer is similar, but the collection mechanism is different.
Voluntary VAT registration can be beneficial because it allows you to reclaim VAT on business purchases and expenses, potentially saving significant amounts. It can also make your business appear more established to larger clients. However, you'll need to charge VAT on your sales and file regular VAT returns, which adds administrative work.