VAT Calculator UK – Add, Remove & Reverse VAT Instantly
VAT Calculator UK
Add VAT, Remove VAT & Reverse VAT Instantly.
Calculate UK and European VAT rates in seconds with our free online VAT Calculator.
VAT Calculator
Select your country, enter an amount, choose a mode and get instant VAT calculations.
What is VAT?
VAT (Value Added Tax) is a consumption tax applied to most goods and services sold in the UK, across the European Union, and in many other countries worldwide. It is an indirect tax, meaning it is collected by businesses on behalf of the government and ultimately paid by the end consumer.
In the UK, VAT is administered by HMRC (His Majesty's Revenue and Customs). Businesses with a taxable turnover exceeding the VAT registration threshold (£90,000 as of 2024–2026) must register for VAT, charge it on their sales, and submit regular VAT returns to HMRC.
VAT (Value Added Tax) is a consumption tax charged on most goods and services in the UK. The standard UK VAT rate is 20%. A reduced rate of 5% applies to items like home energy and children's car seats. Some goods (such as food, children's clothing, and books) are zero-rated at 0%. VAT is administered by HMRC and businesses must register once turnover exceeds £90,000.
How to Calculate VAT
Calculating VAT depends on whether you want to add VAT to a net price, remove VAT from a gross price, or find the VAT amount within a VAT-inclusive price. Below are the three core VAT formulas used by HMRC-registered businesses.
To add VAT: multiply the net price by (1 + VAT rate as decimal). For 20% UK VAT on £100: £100 × 1.20 = £120 gross.
To remove VAT: divide the gross price by (1 + VAT rate). £120 ÷ 1.20 = £100 net.
To find the VAT amount only: Gross − Net. £120 − £100 = £20 VAT.
Add VAT Calculator
The Add VAT Calculator is used when you have a net (ex-VAT) price and need to calculate the total price including VAT. This is most commonly used when creating invoices, quoting prices, or converting trade prices to consumer prices.
To add 20% VAT to a net price: multiply by 1.20. Example: £250 net × 1.20 = £300 gross (including VAT). The VAT amount is £50. For other rates: 5% → multiply by 1.05 | 25% → multiply by 1.25.
Add VAT Examples
- Net £100 + 20% VAT = £120 gross (VAT: £20)
- Net £500 + 20% VAT = £600 gross (VAT: £100)
- Net £1,000 + 5% VAT = £1,050 gross (VAT: £50)
- Net £250 + 19% VAT (Germany) = €297.50 gross (VAT: €47.50)
- Net £10,000 + 22% VAT (Italy) = €12,200 gross (VAT: €2,200)
Remove VAT Calculator
The Remove VAT Calculator is used when you have a gross (VAT-inclusive) price and want to find the net price before VAT. This is essential for bookkeeping, reclaiming VAT on purchases, and converting consumer prices back to trade prices.
To remove 20% VAT from a gross price: divide by 1.20. Example: £360 ÷ 1.20 = £300 net. The VAT amount is £60. Quick shortcut for 20%: divide gross by 6 to find just the VAT amount (£360 ÷ 6 = £60).
Remove VAT Examples
- Gross £120 − 20% VAT = £100 net (VAT was £20)
- Gross £600 − 20% VAT = £500 net (VAT was £100)
- Gross £1,050 − 5% VAT = £1,000 net (VAT was £50)
- Gross €238 − 19% VAT (Germany) = €200 net (VAT was €38)
- Gross €1,220 − 22% VAT (Italy) = €1,000 net (VAT was €220)
Reverse VAT Calculator
The Reverse VAT Calculator (also called a backward VAT calculator) extracts the VAT that is hidden within a VAT-inclusive (gross) price. This is often needed by businesses who purchase goods at consumer retail prices and need to record the net cost and VAT separately in their accounts.
Reverse VAT means calculating the VAT amount that is already included in a gross price, without adding extra VAT. Formula: VAT = Gross ÷ (1 + Rate) × Rate. Example at 20%: £120 ÷ 1.20 × 0.20 = £20 VAT. Net = £120 − £20 = £100. This is also called "backing out the VAT".
Reverse VAT also has a second meaning in UK law: the VAT Reverse Charge mechanism, where the buyer accounts for VAT instead of the seller. This applies to certain construction services, wholesale gas and electricity supplies, and cross-border B2B services within the EU.
VAT Inclusive vs VAT Exclusive
VAT inclusive (gross) means VAT is already included in the stated price. A £120 VAT-inclusive price at 20% contains £100 net + £20 VAT. VAT exclusive (net) means VAT is not included; it must be added on top. A £100 VAT-exclusive price at 20% becomes £120 after VAT is added. Consumer (retail) prices are usually VAT inclusive. Business (trade) prices are usually VAT exclusive.
| Feature | VAT Inclusive | VAT Exclusive |
|---|---|---|
| Also Known As | Gross Price | Net Price |
| VAT Included? | Yes – already included | No – must be added |
| Used By | Retailers (B2C) | Businesses (B2B) |
| Example (20% VAT) | £120 (includes £20 VAT) | £100 (+ £20 VAT = £120) |
| To Find Net | Divide by 1.20 | Price is already net |
| UK Legal Requirement | Required for consumer display | Acceptable for trade/B2B |
UK VAT Rates 2026
HMRC operates three main UK VAT rates in 2026. Most goods and services are subject to the standard 20% rate, but certain essential items benefit from reduced or zero rates.
| Rate Type | Rate | Applies To |
|---|---|---|
| Standard | 20% | Most goods and services – clothing (adult), electronics, vehicles, alcohol, restaurants |
| Reduced | 5% | Domestic fuel & power, children's car seats, mobility aids, some health products, women's sanitary products |
| Zero Rate | 0% | Most food, children's clothing & shoes, books & newspapers, prescription medicines, public transport |
| Exempt | N/A | Insurance, financial services, education, healthcare, property rental (in most cases) |
European VAT Rates 2026
Each EU member state sets its own VAT rates within minimum thresholds set by the EU. Below are the VAT rates for major European economies supported by our VAT Calculator.
| Country | Standard Rate | Reduced Rate | Super-Reduced |
|---|---|---|---|
| 🇬🇧 United Kingdom | 20% | 5% | — |
| 🇩🇪 Germany | 19% | 7% | — |
| 🇫🇷 France | 20% | 10% | 5.5% |
| 🇮🇹 Italy | 22% | 10% | 5% |
| 🇪🇸 Spain | 21% | 10% | 4% |
| 🇳🇱 Netherlands | 21% | 9% | — |
| 🇧🇪 Belgium | 21% | 12% | 6% |
| 🇮🇪 Ireland | 23% | 13.5% | 9% |
| 🇸🇪 Sweden | 25% | 12% | 6% |
| 🇵🇹 Portugal | 23% | 13% | 6% |
| 🇵🇱 Poland | 23% | 8% | 5% |
| 🇵🇰 Pakistan | 18% | — | — |
| 🇮🇳 India (GST) | 28% | 18% / 12% | 5% |
| 🇦🇪 UAE (VAT) | 5% | — | — |
VAT Calculator for Businesses
For UK businesses, understanding and correctly accounting for VAT is a legal requirement. VAT-registered businesses must charge output VAT on their sales and can reclaim input VAT on eligible business purchases. Our Business Invoice VAT Calculator makes this process effortless.
Output VAT vs Input VAT
- Output VAT – VAT you charge customers on your sales. This is paid to HMRC.
- Input VAT – VAT you pay on business purchases. This is reclaimed from HMRC.
- VAT Payable – The difference: Output VAT minus Input VAT. If negative, HMRC refunds you.
Business VAT Calculator Use Cases
- Creating VAT-compliant invoices showing net, VAT, and gross amounts
- Calculating the VAT element of business expenses for reclaiming
- Preparing quarterly VAT return figures
- Converting supplier gross prices to net for bookkeeping purposes
- Verifying VAT charged by suppliers matches their stated rate
VAT Calculator for Freelancers
As a freelancer or sole trader in the UK, once your annual turnover exceeds £90,000, VAT registration becomes compulsory. Many freelancers choose to register voluntarily below this threshold, which allows them to reclaim VAT on business costs.
How Freelancers Use the VAT Calculator
- Quoting clients: Calculate VAT-inclusive project fees from your net day rate or project fee
- Invoicing: Show net amount, 20% VAT, and gross total separately on every invoice
- Flat Rate Scheme: If on the HMRC Flat Rate Scheme, calculate how much VAT you keep vs pay
- VAT on expenses: Work out the VAT portion of business expenses (software, equipment, travel) to reclaim
- Cash flow planning: Remember VAT you collect belongs to HMRC, not you — plan accordingly
VAT Calculator for Ecommerce, Amazon & Shopify Sellers
Online sellers face complex VAT obligations that vary depending on where they sell and where their customers are located. Our VAT calculator supports all major ecommerce scenarios.
VAT for Amazon Sellers UK
Amazon sellers in the UK must charge VAT on orders if their turnover exceeds the registration threshold. Amazon's VAT Calculation Service (VCS) automatically handles VAT for enrolled sellers, but you still need to understand the numbers. Use our VAT calculator to verify amounts on your Amazon settlement reports.
VAT for Shopify Stores
Shopify automatically applies VAT based on customer location settings. However, merchants need to verify that Shopify's automatically calculated VAT matches their VAT registration obligations. From July 2021, the EU introduced the One-Stop-Shop (OSS) scheme for cross-border B2C sales, allowing EU sellers to report all EU VAT through a single country.
VAT on Digital Services
If you sell digital products or services to EU consumers, you must charge VAT at the rate applicable in the customer's country. This includes e-books, digital downloads, software subscriptions, and online courses. Our multi-country VAT calculator covers all major EU VAT rates.
VAT Registration UK – When and How to Register
Mandatory registration: UK businesses must register for VAT with HMRC when taxable turnover in any rolling 12-month period exceeds £90,000 (2024–2026 threshold). You must register within 30 days of exceeding this threshold.
Voluntary registration: Businesses below the threshold can register voluntarily. Benefits include reclaiming input VAT on purchases and appearing more credible to VAT-registered business customers.
UK VAT Schemes for Small Businesses
- Standard VAT Accounting – Submit quarterly returns based on invoice dates (most common)
- Cash Accounting Scheme – Only account for VAT when payment is received/made (better for cash flow)
- Flat Rate Scheme – Pay a fixed percentage of gross turnover; suitable for service businesses with low costs
- Annual Accounting Scheme – Submit one annual return with monthly/quarterly advance payments
Common VAT Mistakes to Avoid
VAT Calculator FAQ – 50 Questions Answered
Below are the most commonly asked questions about VAT in the UK and Europe, covering calculations, rates, registration, and business obligations.
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