This VAT calculator is designed for UK businesses that need to quickly add VAT to a net amount or remove VAT from a gross total. It supports standard rate (20%), reduced rate (5%) and zero-rated supplies.
Understanding how VAT is calculated is essential when issuing invoices, checking supplier bills, or preparing figures for your VAT return. Incorrect VAT calculations can lead to overpayments, underpayments, or discrepancies in your accounting records.
The calculator below allows you to enter either the net amount (before VAT) or the total including VAT. It will automatically calculate the correct VAT and show the full breakdown.
There are many practical situations where you may need to calculate VAT manually. For example, you might receive a payment that includes VAT but need to determine the net amount for bookkeeping purposes. Alternatively, you may be preparing an invoice and need to add VAT to a net figure.
Common situations include:
If you are registered under the standard VAT scheme, the VAT you charge on sales (output tax) must be reported correctly in your VAT return. Errors in calculation can lead to incorrect reporting.
This calculator provides a simple way to double-check figures before they are recorded in spreadsheets or accounting systems.
VAT is calculated by applying the appropriate VAT rate to the net value of goods or services. For example, if a product costs £100 and the VAT rate is 20%, the VAT amount is £20, making the total £120.
If you already have a total amount including VAT and need to determine the original net value, you divide the total by 1 plus the VAT rate. This method ensures the VAT portion is separated accurately.
Businesses registered for VAT must report output tax (VAT charged on sales) and input tax (VAT paid on purchases) correctly when completing their VAT return. VAT rules are set by HMRC, and businesses are responsible for ensuring their VAT calculations are accurate.
| Amount (£) I have | VAT rate |
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This calculator is intended for UK self-employed individuals, freelancers, contractors, and small business owners who prepare invoices, review supplier bills, or complete their own VAT calculations using spreadsheets or accounting software.
In the UK, VAT is charged at different rates depending on the goods or services supplied. Most goods and services are charged at the standard rate of 20%. Some items qualify for a reduced rate of 5%, and others are zero-rated.
Common examples include:
When you sell a mix of items with different VAT rates, you must calculate VAT correctly for each rate. This is especially important when preparing your quarterly VAT return.
If you only have the total amount including VAT, you can remove VAT by dividing the total by 1 plus the VAT rate. For example, if VAT is 20%, divide the total by 1.20 to obtain the net amount. The calculator above performs this calculation automatically.
This calculator is designed to help you split VAT accurately before copying the totals into your VAT spreadsheet or accounting records.
To add VAT, multiply the net amount by the VAT rate. For example, £100 at 20% VAT results in £20 VAT, giving a total of £120.
To remove VAT, divide the total by 1 plus the VAT rate. For example, £120 at 20% VAT divided by 1.20 equals £100 net.
This calculator can help you check figures before entering them into your accounting software or VAT return. Always verify totals carefully before submission.
Using the wrong VAT rate can result in overcharging or undercharging VAT. This may lead to corrections being required in your VAT return and, in some cases, penalties. Always confirm the correct VAT rate for your goods or services before issuing invoices.
No. All calculations are performed in your browser. No amounts entered are saved or transmitted.
This calculator is for guidance only and does not replace professional accounting or tax advice. Always check your figures before submitting a VAT return.