UK VAT Calculator
Use our UK VAT calculator to quickly add or remove Value Added Tax from a price. This tool allows you to calculate how much VAT should be added to a price excluding VAT or how much VAT is included within a VAT-inclusive price.
Enter a price below and select whether the amount includes or excludes VAT to see the VAT amount and final total. This calculator is useful for everyday pricing checks, invoices and general calculations.
Enter a price below and select whether the amount includes or excludes VAT to see the VAT amount and final total. This calculator is useful for everyday pricing checks, invoices and general calculations.
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Disclaimer: This calculator provides estimates only and is for general informational use. Always consult official HMRC guidance or your accountant for complex VAT returns. Last checked and updated January 2026.
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How the UK VAT Calculator Works
This calculator uses the standard UK VAT rate to calculate Value Added Tax on a given price. It can work in two ways:
By entering a price in the appropriate section, the calculator applies the correct VAT formula and displays the VAT amount and final total.
Adding VAT to a Price
When adding VAT, the calculator increases the original price by the VAT percentage. For example, adding VAT to a price excluding VAT shows how much tax should be added and the total amount payable.
This is commonly used when:
This is commonly used when:
Example 1: Adding VAT to a B2B Invoice
If you are a VAT-registered business providing £500 worth of consulting services, you need to add the standard 20% UK VAT to your invoice.
Calculation: £500 × 0.20 = £100 VAT.
The total amount payable by your client will be £600.
If you are a VAT-registered business providing £500 worth of consulting services, you need to add the standard 20% UK VAT to your invoice.
Calculation: £500 × 0.20 = £100 VAT.
The total amount payable by your client will be £600.
Removing VAT from a Price
When removing VAT, the calculator works out how much VAT is already included within a VAT-inclusive price. It separates the VAT amount from the net price.
This is useful when:
This is useful when:
Example 2: Extracting VAT from a Business Expense
If you purchase a new laptop for your business and the receipt shows a total of £1,200 (VAT inclusive), you may need to know how much VAT you can reclaim.
Calculation: To find the VAT amount, divide the total by 6 (since 20% VAT represents 1/6th of the gross price).
£1,200 ÷ 6 = £200 VAT. The net cost to your business is £1,000.
If you purchase a new laptop for your business and the receipt shows a total of £1,200 (VAT inclusive), you may need to know how much VAT you can reclaim.
Calculation: To find the VAT amount, divide the total by 6 (since 20% VAT represents 1/6th of the gross price).
£1,200 ÷ 6 = £200 VAT. The net cost to your business is £1,000.
When Should You Use a VAT Calculator?
This calculator is useful when you want to:
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About This UK VAT Calculator
This calculator uses the standard UK VAT rate of 20%, which applies to most goods and services. It is designed to help freelancers, contractors, and business owners quickly calculate invoice totals and extract reclaimable VAT from receipts.
Please note: While the standard rate is 20%, the UK also has a reduced rate of 5% (e.g., for home energy or mobility aids) and a zero rate (0%) for items like most food, children’s clothing, and books.
This calculator is built solely for standard 20% calculations. Always consult official HMRC guidance or your accountant for complex VAT returns.
Please note: While the standard rate is 20%, the UK also has a reduced rate of 5% (e.g., for home energy or mobility aids) and a zero rate (0%) for items like most food, children’s clothing, and books.
This calculator is built solely for standard 20% calculations. Always consult official HMRC guidance or your accountant for complex VAT returns.
Frequently Asked Questions
What VAT rate does this calculator use?
It uses the standard UK VAT rate of 20%, which has been in place since 2011. It does not calculate the reduced rate (5%) or zero-rated goods.
Can I use this calculator for invoices?
Yes. If you are quoting a net price to a client, use the ‘Add VAT’ section to find the exact tax amount and the gross total to put on your invoice.
Does this calculator work for reduced VAT rates?
No. It is designed for standard VAT calculations only.
Is this calculator suitable for business use?
Yes, for quick checks and estimates, but professional advice should be sought for tax matters.
Is VAT always included in prices?
In the UK, prices shown to everyday consumers in shops and online must include VAT by law. However, prices shown to other businesses (B2B) are often listed excluding VAT. This is why it is crucial to know how to add or extract the 20% correctly depending on who you are buying from or selling to.
Disclaimer
This calculator provides estimates only and is for general informational use. Always consult official HMRC guidance or your accountant for complex VAT returns.
Last checked and updated January 2026.
Last checked and updated January 2026.