VAT Calculator
Add VAT to a net price or strip VAT from a gross amount. Useful for invoicing clients, checking supplier quotes, or reconciling your VAT return — supports standard rate (20%), reduced rate (5%), and zero rate (0%).
How it's calculated
To add VAT: Gross = Net × (1 + Rate). To remove VAT: Net = Gross ÷ (1 + Rate).
Frequently Asked Questions
- What is the standard rate of VAT in the UK?
- The standard rate of VAT in the UK is 20%. A reduced rate of 5% applies to certain goods such as domestic energy and children's car seats. Some items are zero-rated (0%), including most food, books, and children's clothing.
- How do I remove VAT from a price?
- Divide the gross (VAT-inclusive) amount by 1.20 for standard rate, or 1.05 for reduced rate. For example, £120 ÷ 1.20 = £100 net, with £20 VAT.
- Do I need to register for VAT?
- You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period. You can also register voluntarily below this threshold.
- When should I charge VAT to customers?
- Once VAT-registered, you must charge VAT on all taxable supplies of goods and services. This includes sales to UK consumers, businesses, and overseas customers (subject to place-of-supply rules). You issue a VAT invoice showing the net amount, VAT rate, and VAT amount separately.
- What's the difference between zero-rated and VAT-exempt?
- Zero-rated goods (e.g. most food, children's clothing, books) are taxable at 0% — VAT-registered businesses still report them on their VAT return and can reclaim input VAT on related costs. VAT-exempt supplies (e.g. insurance, education, financial services) fall outside the VAT system entirely — you cannot reclaim input VAT on costs related to exempt sales, and exempt turnover does not count toward the registration threshold.