VAT Calculator
Use this free VAT calculator to instantly add or remove VAT from any price. Supports UK standard rate (20%), reduced rate (5%), and any custom VAT rate. Perfect for businesses, freelancers, and consumers.
VAT Calculator
How to Use the VAT Calculator
- Enter the price (either ex-VAT or inc-VAT)
- Enter the VAT rate (20% standard, 5% reduced, or your own rate)
- Select whether to add VAT or remove VAT
- Click Calculate for instant results
What Is VAT?
VAT (Value Added Tax) is a consumption tax applied to most goods and services in the UK and across the EU. Businesses registered for VAT collect it on behalf of HMRC and pass it on through their tax returns. Consumers pay VAT as part of the final purchase price.
UK VAT Rates
| VAT Rate | Rate | Applies To |
|---|---|---|
| Standard rate | 20% | Most goods and services |
| Reduced rate | 5% | Home energy, children’s car seats, some health products |
| Zero rate | 0% | Food, children’s clothing, books, public transport |
| Exempt | N/A | Insurance, education, health services |
VAT Calculation Examples
| Price (ex-VAT) | VAT Rate | VAT Amount | Price (inc-VAT) |
|---|---|---|---|
| £100 | 20% | £20 | £120 |
| £250 | 20% | £50 | £300 |
| £80 | 5% | £4 | £84 |
| £1,000 | 20% | £200 | £1,200 |
How to Remove VAT from a Price
To remove VAT from a VAT-inclusive price, divide by (1 + VAT rate). For example, to remove 20% VAT from £120: £120 ÷ 1.20 = £100 (ex-VAT). The VAT element is £20.
VAT Calculator FAQ
How do I calculate VAT at 20%?
To add 20% VAT: multiply the price by 1.20. To remove 20% VAT from an inc-VAT price: divide by 1.20. For example, £200 ÷ 1.20 = £166.67 ex-VAT.
Do I need to register for VAT?
In the UK, you must register for VAT once your taxable turnover exceeds £90,000 per year (as of 2024). You can also register voluntarily if your turnover is below this threshold.
Is VAT the same as sales tax?
They are similar but not identical. VAT is collected at each stage of production and sale, with each business reclaiming the VAT they have paid. Sales tax (used in the US) is collected only at the final point of sale.