Use our free UK VAT Calculator to quickly add or remove VAT from any amount. Calculate VAT at the standard 20% rate, reduced 5% rate or enter a custom VAT percentage. Instantly see the net amount, VAT amount and gross total for invoices, purchases and business expenses.

VAT Calculator

Calculate VAT amounts instantly. Add or extract VAT from any value with UK rates (20%, 5%, 0%).

Checked = Extract VAT | Unchecked = Add VAT

Adding VAT to £100.00

Breakdown

Standard Rate: 20%
Net Amount £100.00 Before VAT
VAT Amount £20.00 @ 20%
Total £120.00 Including VAT

Calculation Flow

1 £100.00 Input
2 Add VAT Operation
3 20% Rate
4 £120.00 Total

Extracting VAT from Total

When an amount includes VAT, the net is calculated as:
Net = Total ÷ (1 + VAT rate)
Example: £120 ÷ 1.20 = £100 (net), £20 (VAT)

Summary

For an amount of £100.00 at 20% VAT: The net is £100.00, VAT is £20.00, and total is £120.00.

What is VAT?

Value Added Tax (VAT) is a consumption tax levied on most goods and services in the UK. Businesses register for VAT when their taxable turnover exceeds the VAT threshold (£90,000 as of 2024). VAT is ultimately paid by the end consumer, but collected and remitted by registered businesses to HMRC.

UK VAT Rates

Rate Name Common Uses
20% Standard Rate Most goods and services
5% Reduced Rate Home energy, children’s car seats, residential conversions
0% Zero Rate Food, children’s clothing, books, newspapers

Note: Some supplies are exempt from VAT (insurance, postage stamps, betting) and some are outside the scope of VAT ( salaries, dividends).

Adding vs Extracting VAT

  • Adding VAT: When you have a net price and want to add VAT, multiply by the rate.
    Example: £100 × 20% = £20 VAT, Total = £120
  • Extracting VAT: When you have a gross price (including VAT) and want to find the net, divide by (1 + rate).
    Example: £120 ÷ 1.20 = £100 net, VAT = £20

Historical UK VAT Rates

UK VAT was introduced in 1973. The standard rate has changed several times:

  • 2011-Current: 20%
  • 2011-2011: Temporarily reduced to 15% (December 2008 – December 2009)
  • 1979-2011: 17.5%
  • 1974-1979: 10%
  • 1973-1974: 8%

VAT Registration Threshold

As of April 2024, businesses must register for VAT if their taxable turnover exceeds £90,000 in any 12-month period. Voluntary registration is allowed below this threshold, which can be beneficial for businesses that make mostly B2B sales (to reclaim input VAT).

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