UK VAT Calculator

Calculate VAT for your business transactions

Add VAT

Use this calculator when you have a net amount (before VAT) and need to calculate the VAT amount and total price including VAT. Perfect for creating invoices or estimating final costs.

£
VAT Rate:20%
VAT Amount:£0.00
Total Amount:£0.00

Extract VAT

Use this calculator when you have a gross amount (including VAT) and need to work out how much VAT is included in the price. Useful for expense calculations and VAT returns.

£
VAT Rate:20%
Net Amount:£0.00
VAT Amount:£0.00
Based on standard UK VAT rate of 20%

Understanding VAT

What is VAT?

Value Added Tax (VAT) is a tax charged on most goods and services in the UK. VAT-registered businesses must charge VAT on their goods or services, and can reclaim VAT they've paid on business purchases.

VAT Rates in the UK

  • Standard rate: 20% - Applies to most goods and services
  • Reduced rate: 5% - Applies to some goods and services, like children's car seats and home energy
  • Zero rate: 0% - Applies to most food items, books, and children's clothes

VAT Registration

You must register for VAT if:

  • Your VAT taxable turnover exceeds £85,000 (the current threshold)
  • You expect to exceed the threshold in the next 30 days

You can also register voluntarily if your turnover is below the threshold, which might be beneficial for your business.

VAT Returns

VAT-registered businesses must:

  • Submit VAT returns usually every 3 months
  • Keep accurate VAT records and a VAT account
  • Use Making Tax Digital compatible software for VAT records and returns
Learn more about VAT on GOV.UK