VAT Calculator - Add or Remove VAT Instantly
Use our free VAT calculator to add or remove VAT from any price. Supports custom VAT rates.
VAT Calculator
Calculate VAT quickly for any amount and rate.
Result
Enter an amount and click Calculate to see the VAT breakdown.
How It Works
Value Added Tax (VAT) is a consumption tax applied at each stage of the supply chain. In the UK the standard rate is 20%, with a reduced rate of 5% for certain goods and services such as domestic energy and children's car seats.
To add VAT to a net (ex. VAT) price, multiply the net amount by the VAT rate and add it to the original: Gross = Net x (1 + Rate / 100). For example, a £100 net price at 20% VAT gives a gross price of £120.
To remove VAT from a gross (inc. VAT) price, divide the gross amount by (1 + Rate / 100): Net = Gross / (1 + Rate / 100). The VAT amount is then Gross - Net.
Example
A freelance designer invoices a client £500 for a logo project (net, ex. VAT). The designer is VAT-registered and charges the standard 20% rate.
VAT amount: £500 x 20% = £100. Gross invoice total: £500 + £100 = £600.
The client pays £600 in total. The designer collects £100 VAT on behalf of HMRC and submits it in their next VAT return.
Frequently Asked Questions
- What is the standard VAT rate in the UK?
- The standard UK VAT rate is 20%. A reduced rate of 5% applies to items such as home energy and children's car seats. Some goods and services are zero-rated (0%) or exempt from VAT entirely.
- What is the difference between net and gross prices?
- The net price is the amount before VAT is added. The gross price is the amount including VAT. When a supplier is VAT-registered, they add VAT on top of their net price to arrive at the gross price that the customer pays.
- Do I need to be VAT-registered to charge VAT?
- Only VAT-registered businesses can charge VAT. In the UK, you must register for VAT once your taxable turnover exceeds the registration threshold (£90,000 as of 2024/25). Businesses below this threshold can register voluntarily.
- Can I reclaim VAT?
- VAT-registered businesses can reclaim VAT they have paid on business expenses (input tax) by offsetting it against the VAT they have charged customers (output tax). The difference is paid to or reclaimed from HMRC.
- Is this calculator free to use?
- Yes. All QuantlyHub calculators are completely free with no sign-up required.
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