Invoice VAT Calculator
Quickly calculate the VAT amount and gross total for any invoice, or work backwards from a gross figure to find the net amount and VAT. Supports the standard 20% rate, reduced 5% rate, and a custom rate for international or specialist use.
How it's calculated
Net to Gross: VAT = Net × Rate | Gross = Net + VAT
Gross to Net: Net = Gross ÷ (1 + Rate) | VAT = Gross − Net
Frequently Asked Questions
- When does the 5% reduced VAT rate apply?
- The 5% reduced rate applies to specific goods and services in the UK, including domestic fuel and power, installation of energy-saving materials, children's car seats, and some residential property conversions. Always confirm the correct rate with HMRC guidance.
- What is the difference between net and gross on an invoice?
- The net amount is the price before VAT. The gross amount is the total the customer pays, including VAT. On a VAT invoice you must show both figures along with the VAT amount and rate.
- Do I need to charge VAT on all my invoices?
- You must charge VAT on taxable supplies only if you are VAT-registered. The current registration threshold is £90,000 annual taxable turnover. If you are not registered, you cannot charge or reclaim VAT.