VAT Calculator

Calculate VAT for all rates - Standard 20%, Reduced 5%, and Zero 0%

Select the applicable UK VAT rate
Choose whether to add or remove VAT
£
Enter the net amount (excluding VAT)

VAT Calculation Results

Net Amount (Ex VAT) £0.00
VAT Amount £0.00
Gross Amount (Inc VAT) £0.00
Effective VAT Rate 20%

UK VAT Rates

Standard Rate (20%)

Applied to most goods and services in the UK.

Reduced Rate (5%)

Applied to:

  • Domestic fuel and power
  • Children's car seats
  • Sanitary products
  • Mobility aids for disabled people
  • Certain energy-saving materials

Zero Rate (0%)

Applied to:

  • Most food and drink
  • Books and newspapers
  • Children's clothes
  • Public transport
  • Prescription medicines

VAT Registration

You must register for VAT if your turnover exceeds £85,000 (2023/24 threshold).

Benefits of VAT Registration:

  • Reclaim VAT on business expenses
  • Appear more established to customers
  • Trade with other VAT-registered businesses

VAT Return Deadlines:

  • Quarterly returns: 1 month and 7 days after period end
  • Annual returns: 2 months after year end
  • Monthly returns: 1 month and 7 days after period end

Common VAT Calculations

Adding VAT (Net to Gross):

Formula: Gross = Net × (1 + VAT Rate)
Example: £100 + 20% VAT = £100 × 1.20 = £120

Removing VAT (Gross to Net):

Net: Net = Gross ÷ (1 + VAT Rate)
VAT: VAT = Gross - Net
Example: £120 ÷ 1.20 = £100 net, £20 VAT

Quick VAT Calculation:

For 20% VAT: VAT = Gross × 20/120 = Gross × 1/6

VAT Exemptions

Some goods and services are exempt from VAT:

  • Insurance services
  • Postal services
  • Financial services
  • Education and training
  • Healthcare services
  • Betting and gaming
  • Fundraising events

Note: Exempt supplies don't allow VAT reclaim on related costs.