UK VAT Calculator

Last updated: January 15, 2024
Add VAT to a price or take VAT off a price in a click with our handy online VAT calculator
Remove VAT Add VAT

How to use the VAT calculator

Calculating VAT for VAT-inclusive and VAT-exclusive prices has never been easier. Only 3 easy steps for VAT calculation:

  • Check the VAT rate. It’s preset to 20%
  • Enter the net or gross sum
  • Click "Remove VAT" to deduct VAT from figure or "Add VAT" to calculate amount with VAT
The VAT calculator rate is set for UK VAT calculation
Country of VAT United Kingdom
Currency of VAT Pound sterling
Standard VAT rate 20%
Reduced VAT rate 5%

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Share Vatulator on social media

Using our handy VAT calculator, you can easily add or remove VAT from any value amount entered. Please share our calculator on social media, so that other people can also easily calculate VAT.

What are the features of Vatulator?

Our tool has a number of advantages over competitors, including calculation accuracy, ease of use and much more.
Accurate results

Accurate results

Our calculator always rounds the number down, unlike many similar calculators. So, you can always be sure your calculations are correct.

Reverse VAT calculation

Reverse mode

If you need to find Net or Gross price knowing VAT amount and VAT rate try our reverse calculator.

Flexible tax rates

Flexible tax rates

The calculator allows you to specify any tax rate, not just the standard VAT rate of 20% or the reduced VAT rate of 5%.

Works without internet

Works without internet

The calculator is designed as a progressive web application. This makes it possible to do calculations even without access to the internet.

Export and share results

Export and share results

You can export the result as text at the touch of a button. You can also share a link to the result with a single click.

Calculation history

Calculation history

Soon you will have the ability to keep a history of all calculations. This can be useful for HMRC Making Tax Digital compliance.

How much is VAT in the UK?

VAT (known in some countries as a GST) is a sales tax and is charged on most goods and services provided by VAT-registered businesses in the UK and the Isle of Man. The current standard rate of VAT is 20%. The reduced rate of VAT is 5%.

Reduced-rate items Zero-rated items VAT exempt items
Children's car seats Children's clothing and shoes, public transport Betting and gaming
Women's sanitary products Books and newspapers Subscriptions to membership organisations, postage stamps
Residential conversions Food - except meals in restaurants Fundraising events by charities
Installation of energy-saving materials Most goods you export to a country outside the UK Some education and training
Domestic fuel and power Motorcycle helmets Providing credit and Insurance

Value Added Tax is collected on behalf of HMRC by businesses that are VAT registered. After registration, each company receives its own VAT number. These same business can also claim VAT back on relevant purchases.
In the United Kingdom Value Added Tax was introduced in 1973 as a replacement for Purchase Tax and Selective Employment Tax, as a condition of UK entry into the European Economic Community. You can find out more about VAT on Wikipedia.
standard rate

The standard rate of VAT in the UK was increased from 17.5% on 4 January 2011.

reduced rate

The reduced rate of 5% is applied to some goods and services such as children’s car seats and home energy.

zero rate

Zero VAT rate is applied to a range of products and services to do with health, publishing and kids’ clothing.

UK VAT rate history

Date VAT changes
1st April 1973 10% Value Added Tax has been introduced in the UK
29th July 1974 VAT rate reduced to 8% but 25% fuel tax introduced
18th June 1979 Value Added Tax rate increased to 15%
1st April 1991 The VAT rate has been increased to 17.5%
1st December 2008 Standard sales tax rate reduced by 15%
1st January 2010 The standard rate was increased to 17.5% and a reduced rate of 7% was introduced
4th January 2011 The standard VAT rate is increased to current 20% and the reduced rate is set at 5%

VAT receipts in the United Kingdom for last 20 years (in billion GBP)

VAT receipts in the United Kingdom

VAT Rates in European Union

Country Standard VAT Rates Reduced VAT Rates
Austria 20% 10%, 13%, 19%
Belgium 21% 12%, 6%
Bulgaria 20% 9%
Croatia 25% 13%, 5%
Cyprus 19% 5%, 9%
Czech Republic 21% 15%, 10%
Denmark 25% -
Estonia 20% 9%
Finland 24% 14%, 10%
France 20% 5.5%, 2.1%
Germany 19% 7%, 5.5%
Greece 24% 13%
Hungary 27% 5%, 12%, 7%, 18%
Ireland 23% 13.5%, 4.8%, 9%
Italy 22% 4%, 5%, 10%
Latvia 21% 12%
Lithuania 21% 9%, 5%
Luxembourg 17% 14%, 3%, 8%
Malta 18% 5%, 7%
Monaco 20% 5.5%, 10%, 2.1%
Netherlands 21% 9%
Poland 23% 8%, 5%
Portugal 23% 6%, 13%
Romania 19% 9%, 5%
Slovakia 20% 10%, 6%
Slovenia 22% 9.5%, 5%
Spain 21% 10%, 4%
Sweden 25% 12%, 6%

How to work out VAT

Following these simple steps can help you to calculate VAT amount and price including/excluding VAT manually on calculator.
add vat calculation

Adding VAT Formula

If you want to add VAT to original figure, to divide the amount by 100 and then multiply by (100 + VAT percentage). That's all, you got inclusive of VAT value (Gross amount).


Price plus VAT calculation

For example, we will calculate VAT at a standard UK VAT rate of 20. If your business sells goods and services for £500

  1. First, you need to divide the amount by 100 per cent
  2. Then multiply this value by 120 per cent
  3. After the calculation, we get £600, which is the price including VAT

We will calculate VAT at a reduced VAT rate of 5. If your business sells goods and services for £1000

  1. First, you need to divide the price excluding VAT by 100 percentage
  2. Then multiply this value by 105 percentage
  3. We get gross amount £1050 - the price VAT inclusive
  4. It turns out that the VAT amount is £50

revers vat calculation

Removing VAT Formula

If you want to subtract VAT from a figure (to make a reverse VAT calculation), to divide the amount by (100 + VAT percentage) and then multiply by 100. Now you know the amount exclusive of VAT (Net amount).

Remove VAT

Price minus VAT calculation

For example, we will calculate VAT at a standard UK VAT rate of 20. If your business sells goods and services for £500

  1. First, you need to divide the gross price by 120 per cent
  2. Then multiply the value obtained by 100 per cent
  3. We get £416.67, which is the price excluding VAT

We will calculate VAT at a reduced VAT rate of 5. If your business sells goods and services for £1000

  1. First, you need to divide the price including VAT by 105 percentage
  2. Then multiply the value obtained by 100 percentage
  3. We get net amount £952.38 - the price without VAT
  4. Accordingly, the VAT amount is £47.62

how to calculate VAT in excel

Calculate VAT in Excel

If you need to calculate VAT for several goods at once, it is easier to use Excel than a our VAT calculator. I created a Excel spreadsheet – download, it's free.

Download spreadsheet

Frequently Asked VAT Questions & Answers

Below you will find information in Q&A format about value added tax.

What are the current VAT rates in the UK?

Rates vary according to what you’re supplying, and there are four main categories to think about: standard rate, reduce rate, zero-rated and exempt supplies. Rates are subject to change and you must apply changes from the date they change. Read more about what exactly is VAT

How to check the validity of the company VAT number?

To verify the validity of the VAT number you can use the official services. For UK companies there is an UK VAT number checker. If you need to check the VAT number of a European company, try VIES VAT number validation.

What is the flat rate scheme?

The Flat Rate Scheme is open to businesses with a turnover of less than £ 150 000, and it’s designed to simplify the VAT process – particularly for freelancers, contractors and small businesses. You have to make sure you apply to HMRC to sign up for it. Read more about flat rate VAT scheme.

Do I really need to register for VAT?

Well, that depends on your particular circumstances. If your turnover in a 12-month period reaches the current £85,000 threshold, then registration is compulsory – and if you don’t do it, you’ll receive a fine as a penalty. If you don’t hit this figure, then registration isn’t obligatory. Read more about registration for VAT.

What are the differences between zero rate and exempt supplies?

Although both of these categories result in no VAT being applied to the supply, the consequence is very different between them. Where a supply could be either zero-rated or exempt, zero-rating takes priority.

How does VAT affect charities?

There is no general exemption for charities from the VAT system. Only VAT registered charities can reclaim the VAT they are charged, subject to restrictions on the amount they can recover.

Do I need to pay VAT on EC invoices?

When purchasing Goods from EU (from the 1 Jan 2021) the process falls in line with the current process for purchasing goods from overseas. The invoice from the supplier won't contain VAT and should be processed using Tax Code PZ.

How do I apply for Import Duty Relief Certificate?

All goods imported into the U.K. from countries outside the UK (from 1 Jan 2021) are subject to import duty and VAT at rates applicable. Customs Duty will not be applied on goods with a value less than £135 but duty is waived if the amount of duty calculated is less than £9.

6 Interesting VAT Facts

Here you will find the 6 most interesting facts about value added tax that you probably didn't know.
fact 1

VAT was first introduced in France in 1954. The UK VAT rate was originally set at 10% and gradually increased over time, rising to 20% in 2011, and has remained so ever since.

fact 2

In the 2019/2020 tax year, the UK generated £129.88 billion in VAT revenue. VAT is the third largest source of government revenue after income tax and National Insurance.

fact 3

Hungary has the highest VAT rate in the world at 27%, followed by Iceland with 25.5%. Countries that don't charge VAT at all include the Bahamas, Hong Kong, Saudi Arabia and Qatar.

fact 4

Brands that have fought and won VAT victories include Jaffa Cakes and Tunnocks Snowballs, which have successfully proven that their products are cakes (VAT-free) and not cookies, which in turn are subject to VAT.

fact 5

The highlight for the media was the emergence of Pastygate in 2012. The government's proposal to start charging VAT on takeout items such as hot sausage rolls and pastries met with widespread disapproval.

fact 6

Goods with a zero rate of VAT in the UK include: children's clothing, most foodstuffs, books and prescription drugs. Other items not subject to VAT include visits to museums, antiques and postal services.

A simplified example of the VAT process

The following is an explanation of the VAT applied to coffee sold by a coffee shop owner in a store that contains coffee beans roasted by a nearby roaster with beans grown by a local farmer. Assume that the VAT is 20%. Each person or business involved in the chain must complete the government's VAT paperwork.

Fresh coffee beans first come from the local farmer. If the roaster pays a total of £5 per pound of fresh coffee beans, a VAT of £1 (£5 x 20%) is added to this cost, so that the farmer receives a total of: £6 for each pound of coffee beans from the roaster.

coffee bean

The roaster roasts the coffee beans and charges the coffee shop owner £10 per pound of roasted coffee beans. This means that the shopkeeper has to pay a total of £12 per pound, £10 for the roasted coffee beans and 20% VAT, which is £2. However, since the farmer has already paid the first £1 to the HMRC, the roaster only has to pay the government £1 in VAT.

coffee maker

A coffee shop owner can use each pound of roasted coffee beans to sell 5 cups of coffee at £4 each for a total of £20. For every 5 cups of coffee sold, the store owner receives a total of £24 from customers who bought his coffee, £20 and £4 VAT. However, since a total of £2 in VAT has already been paid to the state by the farmer and the roaster, the shopkeeper pays only £2 to the HMRC.

Finance calculators for Small Business

In addition to the VAT calculator we will be adding new financial calculators to our website very soon. Below is a list of the calculators that will appear first. If you have any queries please email us.
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Umbrella Tax Calculator

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PAYE Calculator

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Mortgage Calculator

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Pension Calculator

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IR35 Tax Calculator

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Dividend Tax Calculator

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Related VAT Guides

Watch videos and presentations. You need to register for free webinars to learn more about VAT. We also recommend checking out this VAT cheat sheet.
VAT Accounting schemes

VAT Accounting schemes

You will learn about the 3 most popular schemes: cash accounting scheme, flat rate scheme, annual accounting scheme. Watch webinar about VAT accounting schemes.

How to do your VAT Return

How to do your VAT Return

This webinar is about: how and when to send your VAT Return, useful tips on how to complete a VAT Return. Watch how to do your VAT Return.

VAT Flat Rate Scheme

VAT Flat Rate Scheme

You will learn about: what the Flat Rate Scheme is, how to keep VAT records, how to fill in your VAT Return. Watch video about the VAT Flat Rate Scheme

Contractors’ guide to VAT

Contractors’ guide to VAT

There are several VAT schemes contractors can register to: the standard rate VAT scheme, VAT flat rate scheme, annual accounting VAT scheme and cash accounting scheme.

HMRC VAT Inspection

HMRC VAT Inspection

VAT officers can visit your business to inspect your VAT records and make sure you’re paying or reclaiming the right amount of VAT.

Filing a Late VAT Return

Filing a Late VAT Return

If you submit a late return, you will not have to pay a surcharge if you: pay your VAT in full by the deadline, have no tax to pay, are due a VAT repayment.

What users are saying

Vatulator's reviews & testimonials: see what other are saying. You can also leave your review here or on Smart Reviews, Trustpilot, G2 or Capterra

Cristian Sarasanu
July 31, 2021

Vatulator is a quick and efficient tool for calculating how much money you pay for a certain product. Sadly, the only region it can be useful in is the United Kingdom. I wrote a full review here

August 1, 2021

Christian, thanks for the feedback! In my calculator you can change the VAT rates as you like. I have also made pages for United Arab Emirates, South African and Irish users. There is also a Ukrainian and a Russian version of the calculator. By the way, we are hiring a copywriter to localize the site into other languages.

James Nichols
August 7, 2021

Please add to VAT calculator export data to excel. I think you should add other calculators such as IR35 or a dividend tax calculator.

September 15, 2021

Due to this tool, you will easily find out how much income tax you have to pay according to your salary and annual dividends. My full review here

November 13, 2021

If you make a drop-down list with rates for any country then it would really be a universal VAT calc.

Bryan Adams
March 8, 2022

I use this calculator to calculate the price without VAT. I think it will be more convenient to work out VAT if the VAT percentage will be in the form of a slider.

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