VAT Calculator
Add or remove Value Added Tax (VAT) from gross and net prices for UK, EU, and global tax compliance.
VAT Breakdown
Frequently asked questions
How is VAT calculated?
To add VAT: Net Price × (1 + VAT Rate / 100). To remove VAT: Gross Price / (1 + VAT Rate / 100).
How do I add and remove VAT?
To add, multiply the net price by (1 + rate) - at 20%, multiply by 1.2. To remove VAT from a gross price, divide by (1 + rate). Dividing £120 by 1.2 gives the £100 net; subtracting 20% of £120 would wrongly give £96.
What are the UK VAT rates?
The standard rate is 20%, the reduced rate 5% applies to things such as domestic fuel and children's car seats, and a zero rate covers most food, books and children's clothing. Zero-rated is not the same as exempt: zero-rated sales allow the business to reclaim input VAT, exempt sales do not.
When must a business register for VAT?
In the UK, when taxable turnover exceeds the registration threshold in any rolling 12-month period, or is expected to in the next 30 days. Voluntary registration below the threshold can be worthwhile for businesses selling to other VAT-registered firms, since input VAT becomes reclaimable. Thresholds change, so check the current HMRC figure.