UK VAT Calculator

How to use the VAT Calculator

This tool handles two common scenarios: adding VAT to a net price (what you charge a customer) and removing VAT from a gross price (to find the net amount on a VAT-inclusive price you've already received).

Adding VAT to a price

Select Add VAT, enter the net price (the price before VAT), choose your VAT rate and hit Calculate. The result shows the gross price you should charge your customer and the VAT portion separately.

Removing VAT from a price

Select Remove VAT, enter the gross price (the total including VAT), choose the rate and Calculate. This is useful when you've received a VAT-inclusive invoice and need to split out the net and VAT amounts for your bookkeeping.

VAT rates in the UK (2026)

• 20% Standard rate — applies to most goods and services.
• 5% Reduced rate — applies to certain goods including domestic fuel, children's car seats and some energy-saving products.
• 0% Zero rate — applies to most food, children's clothes, books and newspapers. VAT-registered businesses still need to record zero-rated sales.

When do you need to register for VAT?

You must register for VAT when your taxable turnover exceeds £90,000 in any rolling 12-month period (2024/25 threshold). You can also register voluntarily if your turnover is below this. Use our VAT Threshold Tracker to monitor how close you are.

VAT on your invoices

Once VAT-registered, your invoices must show your VAT registration number, the VAT rate applied, the net amount, VAT amount and gross total separately. Our Invoice Generator handles all of this automatically.