How to Use the UK VAT Calculator
- Enter the amount in pounds — either the net price (before VAT) or the gross price (VAT-inclusive)
- Select the VAT rate: standard (20%), reduced (5%), or zero (0%)
- Choose the calculation direction: Add VAT (net → gross) or Remove VAT (gross → net)
- Results update instantly, showing the net amount, VAT amount, and gross amount
- Use the breakdown to check your invoice, receipt, or pricing calculations
UK VAT Rates 2026
| Rate | Percentage | Applies To |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced | 5% | Domestic energy (gas & electricity), children's car seats, some health and mobility products, sanitary products |
| Zero | 0% | Most food, books and newspapers, children's clothing, exports outside the UK |
The 20% standard rate has been unchanged since 4 January 2011, when it rose from 17.5%. HMRC sets and publishes these rates, and they apply UK-wide (VAT is a reserved tax, not devolved to Scotland, Wales, or Northern Ireland).
How the Calculation Works
Adding VAT (net → gross): VAT amount = net amount × rate. Gross amount = net amount + VAT amount. Example: £100 net at 20% VAT = £20 VAT, £120 gross.
Removing VAT (gross → net): Net amount = gross amount ÷ (1 + rate). VAT amount = gross amount − net amount. Example: £120 gross at 20% VAT = £100 net, £20 VAT.
This calculator is a general-purpose arithmetic tool — it applies the rate you select to the amount you enter using the standard HMRC formula, without judging whether your specific product or service actually qualifies for that rate.
What's Included
- Standard-rate calculation at 20%
- Reduced-rate calculation at 5%
- Zero-rate calculation at 0% (VAT charged at nil, distinct from exempt)
- Both directions: adding VAT to a net price, or extracting VAT from a gross price
- Rounding to the nearest penny, matching standard invoice practice
What's NOT Included
- VAT exemption: Zero-rated and VAT-exempt are not the same thing. Zero-rated supplies (0%) still count as taxable supplies for VAT-registration turnover purposes, and the business can reclaim input VAT. Exempt supplies (e.g. insurance, financial services, education, health services in some cases) sit outside the VAT system entirely and are not modeled here.
- VAT registration threshold logic: This tool does not determine whether a business needs to register for VAT (the current UK threshold is a taxable-turnover figure set separately by HMRC and revised periodically).
- Flat Rate Scheme percentages: Businesses using the VAT Flat Rate Scheme pay a different, trade-specific percentage on gross turnover — this calculator uses the standard accounting method, not the Flat Rate Scheme.
- Partial exemption and reverse charge rules: Complex VAT scenarios such as partial exemption, the domestic reverse charge (e.g. in construction), and cross-border margin schemes are not calculated here.
Who Should Use This Tool
- Freelancers and sole traders checking VAT on an invoice before sending it
- Small business owners quoting prices with or without VAT
- Shoppers and consumers working out how much of a receipt is VAT
- Bookkeepers cross-checking VAT figures on supplier invoices
Frequently Asked Questions
Is the 20% VAT rate going to change? The standard rate has held at 20% since January 2011 — the longest period of stability for UK VAT since it was introduced in 1973. Always check gov.uk/vat-rates for the current figure before relying on this for compliance purposes.
What's the difference between zero-rated and VAT-exempt? Zero-rated goods are still technically subject to VAT — just at 0% — and a VAT-registered business can reclaim VAT paid on related purchases. Exempt goods and services are outside the VAT system altogether, and input VAT related to them generally cannot be reclaimed.
Can I use this for EU or international VAT? No — this calculator uses UK HMRC rates only. Use the Germany VAT calculator for German Mehrwertsteuer, and check the destination country's own rates for other jurisdictions.
Does my data get sent to a server? No. All calculation happens in your browser using JavaScript. Nothing is stored or transmitted.
Is this tool free? Yes, completely free with no login, no limits, and no watermarks.