UK TAX

VAT Calculator

Use this VAT calculator to add VAT, remove VAT from a gross price, or calculate the VAT amount at a standard, reduced, zero, or custom rate. It is a price and invoice arithmetic tool, so use vat add remove for the lightweight everyday version and sales tax for US sales tax. This calculator auto-updates when values change.

VAT details

This calculator auto-updates when values change.

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This calculator provides a general VAT estimate. VAT treatment can vary by country, business status, product type, exemption, and tax period.

Results

Results update automatically.

Gross price

£120.00

£100.00 at 20.00% VAT gives a VAT amount of £20.00.

Net price£100.00
VAT amount£20.00
Gross price£120.00

Visual breakdown

Net price£100.00
VAT amount£20.00

Adding or removing VAT on a price

This VAT calculator adds VAT to a net price, removes VAT from a gross price, and shows the VAT amount separately. It is useful for invoices, quotes, receipts, ecommerce pricing, and business cost checks.

VAT is charged as a percentage of the net price. If you already have a VAT-inclusive price, removing VAT is not the same as subtracting the VAT percentage from the total.

VAT Example

If a net price is GBP 100 and VAT is 20%, the VAT amount is GBP 20 and the gross price is GBP 120.

If the gross price is GBP 120 and VAT is 20%, the net price is GBP 100 because you divide by 1.20 rather than subtracting 20% from GBP 120.

How to Use VAT Results

Use the calculator to check whether a price is VAT-inclusive or VAT-exclusive before issuing quotes or comparing suppliers.

VAT rates and rules vary by country and product type, so confirm the correct rate and whether the transaction is taxable, exempt, zero-rated, or outside scope.

Invoice and Pricing Checks

Before sending an invoice or publishing a price, confirm whether the customer expects to see the net price, VAT amount, and gross total separately. This is especially important for B2B quotes and ecommerce checkout pages.

If you are comparing supplier prices, make sure both prices are treated the same way. A VAT-inclusive price can look higher than a VAT-exclusive price even when the underlying net cost is similar.

Using this VAT estimate in pricing

Use this VAT calculator for three arithmetic jobs: add VAT to a net amount, remove VAT from a VAT-inclusive amount, or calculate the VAT amount only.

The rate field is editable, so it can handle standard, reduced, zero, or custom rates when you already know the correct VAT treatment.

Know whether the starting amount is VAT-exclusive or VAT-inclusive before choosing the mode. The reverse calculation divides by 1 + rate, so subtracting 20% from a gross price is not the same thing.

Use it for invoice checks, quote comparisons, retail pricing, and supplier-price comparisons where the VAT treatment is already known.

Keep VAT registration, partial exemption, flat-rate scheme, reverse charge, and reclaim rules outside this tool; those are compliance questions, not simple add/remove maths.

Common mistakes when estimating VAT

Adding 20% to an already VAT-inclusive price — double counting.

Using standard rate on zero-rated food, books, or exports without checking category.

Confusing VAT with income tax or corporation tax on profit.

Comparing a VAT-inclusive consumer price with a VAT-exclusive business quote without converting one of them.

Using the calculator as a VAT return tool. It does not track input VAT, output VAT, reclaimable VAT, exemptions, or tax periods.

Worked example: VAT add and remove

Example: enter £100 in Add VAT mode at 20%. The VAT amount is £20 and the gross price is £120.

Now enter £120 in Remove VAT mode at 20%. The net price is £100 and the VAT amount is £20.

Change only the rate if you are testing standard versus reduced-rate pricing. Change the mode if the starting price switches from net to gross.

For invoice reviews, keep net price, VAT amount, and gross price visible so both buyer and seller can see which amount is being compared.

Combining with related tax estimates

Use vat add remove for a lighter everyday add/remove VAT flow if you do not need the tax-category page context.

Use sales tax for US-style sales tax arithmetic rather than UK VAT wording.

Use profit margin or markup when the question is business pricing before VAT rather than the VAT amount itself.

Do not route income tax, corporation tax, or VAT-registration threshold searches here unless the calculator actually has those inputs.

Invoice checks before relying on the result

Check whether the customer expects prices to be shown including or excluding VAT.

Check whether the product or service is taxable, exempt, zero-rated, reduced-rate, or outside scope before entering the rate.

Check whether reverse charge or partial exemption applies. If it does, a simple VAT amount may not be enough for accounting records.

When to rerun this estimate

Rerun this VAT calculator whenever the price, VAT rate, or inclusive/exclusive treatment changes.

Recheck supplier comparisons when one quote is VAT-inclusive and another is VAT-exclusive.

If this estimate differs from accounting software, check whether rounding, tax code, rate, invoice line treatment, or reverse-charge handling is different.

Calculate VAT on a price

  1. 1

    Choose add VAT or remove VAT mode

    Net-to-gross or gross-to-net calculation.

  2. 2

    Enter amount

    Net price before VAT or gross VAT-inclusive price.

  3. 3

    Set VAT rate

    Standard 20%, reduced 5%, or zero — enter the rate that applies.

  4. 4

    Review VAT amount and gross or net price

    Use for invoicing, retail pricing, and expense checks.

UK VAT: common questions

What is the standard UK VAT rate?

20% on most goods and services. Reduced and zero rates apply to specific categories.

How do I remove VAT from a gross price?

Net = gross ÷ (1 + rate). The calculator does this in remove mode.

Is VAT the same as sales tax?

Similar concept but VAT is typically embedded in B2B chains with reclaim rules — sales tax US model differs.

Do I need to register for VAT?

Registration is required when taxable turnover exceeds HMRC thresholds — not determined by this tool.

Can I use this for reverse charge?

Reverse charge scenarios need specific invoice treatment beyond simple add/remove maths.

Should I rely on this VAT estimate when filing?

No. It is a simple add/remove VAT calculator. VAT returns, registration, partial exemption, reverse charge, and reclaim rules require proper accounting records and current official guidance.

Disclaimer: This calculator provides simplified tax estimates for education and planning only. It is not tax, legal, accounting, or financial advice. Rules change by jurisdiction, filing status, and personal circumstances — verify results with official guidance or a qualified tax professional before filing or making decisions.