UK VAT Calculator

The standard rate of UK VAT is 20%, which applies to most goods and services. There is a reduced rate of 5% (for things like domestic energy and children's car seats) and a zero rate of 0% (for most food, children's clothing and books). This calculator lets you apply any of the three rates.

To add 20% VAT, multiply the net (VAT-exclusive) amount by 1.20. For example, £1,000 net becomes £1,200 gross, with £200 of VAT. For the 5% reduced rate, multiply by 1.05. Select 'Add VAT' in the calculator and enter your net amount to see the VAT and gross total.

To remove 20% VAT from a VAT-inclusive (gross) figure, divide by 1.20 — not by 0.80. For example, £1,200 gross divided by 1.20 gives £1,000 net, so the VAT is £200. Dividing by 1.20 is the correct way to 'extract' the VAT; select 'Remove VAT' and the calculator does it for you.

Because the VAT was added to the net amount, not to the gross. The gross is 120% of the net, so to get back to the net you divide the gross by 1.20. Multiplying the gross by 0.80 would under-state the net and the VAT, which is a very common mistake this calculator avoids.

For 2025/26 you must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period, or you expect to exceed it in the next 30 days. The threshold rose from £85,000 on 1 April 2024. You can also register voluntarily below the threshold, which can be worthwhile if you reclaim a lot of input VAT.

You can apply to deregister for VAT if your taxable turnover falls below £88,000 for 2025/26. Deregistration is optional and depends on your circumstances — staying registered can be beneficial if your customers are VAT-registered businesses that reclaim the VAT you charge.

There are three: the standard rate of 20% (most goods and services), the reduced rate of 5% (domestic fuel and power, energy-saving materials, children's car seats and some others), and the zero rate of 0% (most food, books, newspapers, children's clothing and public transport). Some items are exempt or outside the scope of VAT entirely, which is different from zero-rated.

Zero-rated supplies are taxable at 0% — you charge no VAT but can reclaim VAT on your related costs. Exempt supplies (like insurance, certain financial services and some property) carry no VAT and do not let you reclaim input VAT. The distinction matters for whether you can recover VAT on your expenses, even though both mean no VAT is charged to the customer.

If you are VAT-registered, you can generally reclaim the VAT you pay on goods and services bought for your business (input VAT), offsetting it against the VAT you charge customers (output VAT). Some costs are blocked or restricted, such as business entertainment and most cars. You reclaim input VAT through your VAT return.

Most VAT-registered businesses file quarterly under Making Tax Digital, submitting the return and paying any VAT due one month and seven days after the quarter ends. Some use annual accounting or monthly returns. The return reports your output VAT charged and input VAT reclaimed, with the difference paid to or refunded by HMRC.

The Flat Rate Scheme lets eligible small businesses pay a fixed percentage of their VAT-inclusive turnover to HMRC instead of working out VAT on every transaction, simplifying admin. You still charge customers 20% but cannot usually reclaim input VAT (except on certain capital assets). Whether it saves money depends on your costs and sector.

It depends on what you sell, where the customer is, and whether they are a business or consumer. Many exports of goods and some services to overseas business customers are zero-rated or outside the scope of UK VAT, but the place-of-supply rules are detailed. This calculator handles the VAT arithmetic; the liability question for cross-border sales needs specific checking.

VAT is charged on the price of goods and services, which can already include other duties (for example, fuel duty or alcohol duty are within the price that VAT is then applied to). VAT is separate from Income Tax, Corporation Tax and National Insurance. This calculator deals only with the VAT element of a price.

Yes — it gives you the net, VAT and gross for any amount, which are the building blocks of the figures you report under Making Tax Digital. For a full VAT return you would total your sales and purchases, but for checking an individual invoice or quote this calculator gives you the exact VAT and gross instantly.

For a 20% VAT-inclusive total, the VAT is the total divided by 6 (since 20/120 = 1/6). For example, £1,200 gross contains £200 of VAT. The net is the remaining five-sixths. Select 'Remove VAT' and the calculator shows the VAT and net automatically, including for the 5% rate.

Only if they are VAT-registered. Below the £90,000 threshold registration is optional, so many small businesses and sole traders do not charge VAT at all. Once registered (voluntarily or because you cross the threshold), you must charge VAT on your taxable sales and file VAT returns. This calculator helps whether you are registered or quoting a customer.

It applies the exact UK VAT rates — 20%, 5% and 0% — and the correct add and remove (divide-by-1.20) arithmetic, so the net, VAT and gross figures are precise. It does not determine whether a particular supply is standard-rated, reduced, zero-rated or exempt, which depends on the goods or services involved.

The calculation runs entirely in your browser and nothing is stored unless you choose to download the branded PDF report, at which point you provide your name and email so we can send it. Phone and address are optional.

Yes. Enter your name and email (phone and address optional) and we generate a TaxStone-branded PDF of your VAT calculation to download instantly — handy for quotes, invoices or sharing with your bookkeeper.

VAT registration timing, scheme choice, partial exemption and cross-border supplies can all materially affect your business, and mistakes are costly. If you are near the threshold or trade internationally, book a free 20-minute call with a TaxStone adviser to make sure your VAT position is right.