UK VAT Calculator
A free, fast, and easy-to-use tool to calculate VAT for your business or personal needs.
Calculation Results
Net Amount
£0.00
VAT Amount
£0.00
Gross Amount
£0.00
How It Works: A Simple Guide
Our calculator makes it easy to either add VAT to a price or find the VAT included in a price.
Adding VAT (from a price excluding tax)
Use this when you have a price before tax and you need to find the total price including VAT.
Example:
If a service costs £100 (excluding VAT) and the rate is 20%:
- VAT Amount: £100 × 0.20 = £20
- Gross Amount: £100 + £20 = £120
On the calculator: Enter 100, select Exclude VAT, and choose the 20% rate.
Reversing VAT (from a price including tax)
Use this when you have a total price that already includes VAT and you need to find out how much of it was tax.
Example:
If a product costs £120 (including VAT) with a 20% rate:
- Net Amount: £120 / 1.20 = £100
- VAT Amount: £120 - £100 = £20
On the calculator: Enter 120, select Include VAT, and choose the 20% rate.
VAT Calculation: Adding VAT to a Net Amount
Here are some examples of the standard VAT rate (20%) and reduced VAT rate (5%) being added to a net price to get the final gross total.
| Net Amount | Gross Amount (20% VAT) | Gross Amount (5% VAT) |
|---|---|---|
| £1,000.00 | £1,200.00 | £1,050.00 |
| £500.00 | £600.00 | £525.00 |
| £200.00 | £240.00 | £210.00 |
| £75.50 | £90.60 | £79.28 |
VAT Calculation: Deducting VAT from a Gross Amount
Here are some examples of how to reverse calculate the VAT from a gross total to find the original net price.
| Gross Amount | Net Amount (from 20%) | Net Amount (from 5%) |
|---|---|---|
| £1,000.00 | £833.33 | £952.38 |
| £500.00 | £416.67 | £476.19 |
| £200.00 | £166.67 | £190.48 |
| £99.99 | £83.33 | £95.23 |
What is VAT?
Understanding Value Added Tax in the UK
Value Added Tax (VAT) is a consumption tax applied to most goods and services sold by VAT-registered businesses in the UK. When you buy something, the price often includes VAT, which businesses collect on behalf of the government (HMRC).
For example, if a product costs £100 and the standard VAT rate of 20% applies, the final price you pay is £120. The business then pays the £20 VAT to HMRC.
Three Main Rates
VAT is charged at a standard rate (20%), reduced rate (5%), or zero rate (0%), depending on the goods or services.
Business Collection
VAT-registered businesses add VAT to their sales and can often reclaim the VAT they pay on their own business purchases.
Government Revenue
It is a significant source of revenue for the UK government, funding public services like the NHS, education, and infrastructure.
Understanding UK VAT: Rates & History
A visual overview of the UK's Value Added Tax system.
Current VAT Rates
The three rates of VAT.
This chart visualizes the three main VAT rates available in the UK.
Historical Standard VAT Rate
How the standard rate has changed over the years.
The Flat Rate Scheme
A simplified accounting scheme for small businesses with a turnover of £150,000 or less. You pay a fixed percentage of your turnover to HMRC based on your industry.
Struggling to Pay VAT?
If you can't pay your VAT bill on time, contact HMRC as soon as possible. You may be able to set up a 'Time to Pay' arrangement. Ignoring the issue can lead to penalties.
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