The fastest VAT calculator for UK businesses, freelancers and individuals. Add VAT to a net price or remove it from a gross figure. Works at 20% standard rate, 5% reduced rate and any custom rate you need.
Select whether you want to add VAT to a price that does not yet include it (net price), or extract the VAT from a price that already includes it (gross price). Enter the amount and choose the applicable VAT rate.
20% Standard Rate — most goods and services in the UK
5% Reduced Rate — domestic energy, children's car seats, some home improvements, sanitary products
0% Zero Rate — most food, children's clothing, books, newspapers, some medications
Use the custom rate option for any rate that falls outside these standard bands.
Net price £500 + 20% VAT → VAT amount £100 → gross price £600. Or gross price £600 with VAT included → remove 20% → net price £500, VAT was £100.
VAT (Value Added Tax) is a consumption tax applied to most goods and services sold in the UK. It is charged by VAT-registered businesses on behalf of HMRC. The customer pays it, the business collects it, and the business passes it to HMRC after deducting any VAT it has paid on its own purchases (known as input tax).
The key practical skill for any business is knowing whether to add VAT or remove it. When you write an invoice, you add VAT to your net fee. When you receive an invoice and want to know the fee before VAT, you remove it. The maths are not symmetric — adding 20% and then removing 20% does not return you to the original figure. That is why a dedicated VAT calculator is more reliable than doing it manually.
Always make clear on invoices whether prices are exclusive of VAT (net) or inclusive of VAT (gross). Many disputes between businesses arise from ambiguity on this point. HMRC requires that VAT invoices show the net amount, VAT amount and gross amount separately for amounts above £250. For amounts below that, a simplified invoice showing the gross total and VAT rate is acceptable.
If you are working with overseas clients or suppliers, note that export of goods and services from the UK to non-UK customers is often zero-rated for VAT. For services, the place-of-supply rules are complex and depend on whether the customer is a business (B2B) or consumer (B2C) and where they are based.
For straightforward UK VAT questions, HMRC's VAT guidance at gov.uk is comprehensive and free. For anything involving international trade, exempt supplies (such as financial services, insurance, health and education), or partial exemption, a VAT specialist accountant is strongly recommended. Getting VAT wrong can result in penalties, interest and back-payments that can significantly impact cash flow.
Common questions about this calculator and how to use it.