UK VAT Calculator
Our free UK VAT calculator makes it simple to add or remove VAT at the standard 20% rate or reduced 5% rate from any amount. Whether you are a freelancer, sole trader, or UK business owner, this tool delivers instant, accurate VAT breakdowns every time.
How UK VAT Is Added and Removed from Prices
This calculator handles two operations: adding VAT to a net (ex-VAT) price, and removing VAT from a gross (inc-VAT) price. For adding VAT: Gross = Net × (1 + VAT rate). For removing VAT: Net = Gross ÷ (1 + VAT rate). Select the UK standard rate (20%) or the reduced rate (5%), enter your amount, choose to add or remove VAT, and the tool will instantly display the net amount, VAT amount, and gross total.
Frequently Asked Questions
What is the standard UK VAT rate?
The standard UK VAT rate is 20%, which applies to most goods and services. A reduced rate of 5% applies to certain items such as domestic energy, children's car seats, and sanitary products. Some goods are zero-rated at 0%, including most food and children's clothing.
How do I remove VAT from a price (reverse VAT)?
To remove 20% VAT from a gross (VAT-inclusive) price, divide the gross price by 1.20. For example, a gross price of £120 divided by 1.20 gives a net price of £100, and the VAT element is £20. For the 5% rate, divide by 1.05.
Do I need to register for VAT in the UK?
In the UK, you must register for VAT if your taxable turnover exceeds £90,000 in any 12-month period (as of 2024/25). You can also register voluntarily if your turnover is below this threshold, which can be beneficial if your customers are VAT-registered businesses.
Is VAT charged on digital services in the UK?
Yes. Digital services sold to UK consumers are subject to UK VAT at the standard 20% rate. This includes streaming subscriptions, e-books, software downloads, and online courses sold to non-business customers in the United Kingdom.
How do I charge VAT on an invoice as a UK small business?
Your VAT invoice must show your VAT registration number, the date, the VAT rate applied, the net (ex-VAT) amount, the VAT amount, and the gross (VAT-inclusive) total. You must be VAT-registered to charge VAT on your invoices. Use our calculator to compute the VAT amount quickly for any invoice.