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VAT Calculator UK - Add or Remove VAT Online
content="Online VAT calculator – add or remove VAT from a price. We have developed the Vatulator VAT calculator as a free to use tool for calculating VAT rates."
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content="Free online VAT calculator – add or remove VAT from a given price. We have developed this VAT calculator as a free to use tool for calculating VAT rates in UK.">

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

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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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

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

Reverse mode

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

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

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

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

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 href="https://www.gov.uk/vat-rates" rel="noopener" target="_blank" class="link-3">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 href="https://en.wikipedia.org/wiki/Value-added_tax_in_the_United_Kingdom" rel="noopener"
target="_blank" class="link-3">Wikipedia.

src="images/standard-rate.png" alt="standard rate" class="vat-rate-pic">

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

src="images/reduced-rate.png" alt="reduced rate" class="vat-rate-pic">

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

src="images/zero-rate.png" alt="zero rate" class="vat-rate-pic">

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 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.

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

First, you need to divide the amount by 100 per cent

Then multiply this value by 120 per cent

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

First, you need to divide the price excluding VAT by 100 percentage

Then multiply this value by 105 percentage

We get gross amount £1050 - the price VAT inclusive

It turns out that the VAT amount is £50

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).

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

First, you need to divide the gross price by 120 per cent

Then multiply the value obtained by 100 per cent

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

First, you need to divide the price including VAT by 105 percentage

Then multiply the value obtained by 100 percentage

We get net amount £952.38 - the price without VAT

Accordingly, the VAT amount is £47.62

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height="64" alt="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 class="link-3">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 href="https://vatulator.co.uk/what-is-flat-rate-scheme.html" class="link-3">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 href="https://vatulator.co.uk/do-i-really-need-to-register-for-vat.html" class="link-3">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.

src="images/one-red.png" alt="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.

src="images/two-red.png" alt="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.

src="images/three-red.png" alt="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.

src="images/four-red.png" alt="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.

src="images/five-red.png" alt="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.

src="images/six-red.png" alt="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.

src="images/farmer-64.png" alt="farmer">

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.

src="images/coffee-bean-64.png" alt="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.

src="images/coffee-maker-64.png" alt="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.

src="images/income-tax-calculator-service.png" alt="Income Tax Calculator">

Income Tax Calculator

If you’re self-employed, it can sometimes be difficult to work out exactly what your take-home pay is once you’ve covered all of your business costs. Find out your take-home pay if you earn 30k, 35k, 40k or 45k.

src="images/self-assessment-tax-calculator.png" alt="Self Assessment Tax Calculator">

Self Assessment Tax Calculator

Whether you’re employed, self-employed or a combination of both, working out your take home pay after tax can be tricky.

src="images/corporation-tax-calculator.png" alt="Corporation Tax Calculator">

Corporation Tax Calculator

Use this calculator to find out how much corporation tax your limited company will be liable for, which is based on your net profit before taxes.

src="images/Umbrella-tax-calculator.png" alt="Umbrella Tax Calculator">

Umbrella Tax Calculator

Our take-home pay calculator gives a rough estimate of what your potential salary might look like if you work through an umbrella company.

src="images/PAYE-calculator.png" alt="PAYE Calculator">

PAYE Calculator

Use this calculator to calculate your take home pay as well as contributions to PAYE and NI, determined by your annual gross salary.

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Mortgage Calculator

A mortgage is one of the biggest commitments you make in your financial life. Our mortgage calculator can help you to know how much they will cost you.

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Pension Calculator

How much do you need in retirement and how much will you have? Our pension calculator will help you answer these questions.

src="images/IR35-tax-calculator.png" alt="IR35 Tax Calculator">

IR35 Tax Calculator

IR35 calculator have become an easy way to find an instant figure of your earnings depending on your situation.

src="images/Dividend-tax-calculator.png" alt="Dividend Tax Calculator">

Dividend Tax Calculator

Find out how much income tax you have to pay based on your current salary and annual dividends with this calculator.

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.

src="images/vat-accounting-schemes.avif" alt="VAT Accounting schemes" class="vat-rate-pic">

VAT Accounting schemes

You will learn about the 3 most popular schemes: cash accounting scheme, flat
rate scheme, annual accounting scheme. Watch webinar about href="https://register.gotowebinar.com/register/6318088897245421069" class="link-3">VAT accounting
schemes.

src="images/how-to-do your-vat-return.avif" alt="How to do your VAT Return" class="vat-rate-pic">

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 href="https://register.gotowebinar.com/register/7601076030348657421" class="link-3">how to do your
VAT
Return.

src="images/vat-flat-rate-scheme.avif" alt="VAT Flat Rate Scheme" class="vat-rate-pic">

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 href="https://register.gotowebinar.com/register/8059271112945181709" class="link-3">VAT Flat Rate
Scheme

src="images/Contractors-guide-to-VAT.avif" alt="Contractors’ guide to VAT" class="vat-rate-pic">

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.

src="images/HMRC-VAT-Inspection.avif" alt="HMRC VAT Inspection" class="vat-rate-pic">

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.

src="images/filing-a-late-vat-return.avif" alt="Filing a Late VAT Return" class="vat-rate-pic">

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.

Latest UK VAT News

src="images/8-Best-Budgeting-Apps-for-2022.png" alt="8 Best Budgeting Apps for 2022" class="vat-rate-pic">

8 Best Budgeting Apps for 2022

src="images/HMRC-publishes-simplified-VAT-guidance-for-overseas-sellers.png" alt="HMRC publishes simplified VAT guidance for overseas sellers" class="vat-rate-pic">

HMRC publishes simplified VAT guidance for overseas sellers

src="images/UK-government-should-introduce-VAT-relief-for small-businesses.png" alt="UK government should introduce VAT relief for small businesses, says Tide boss" class="vat-rate-pic">

UK government should introduce VAT relief for small businesses

src="images/County-Durham-accountant-in-court-over-VAT-fraud.avif" alt="County Durham accountant in court over VAT fraud" class="vat-rate-pic">

County Durham accountant in court over VAT fraud

src="images/Registrations-grow-15-as-SMMT-calls-for-VAT-fairness.avif" alt="Registrations grow 15% as SMMT calls for VAT fairness" class="vat-rate-pic">

Registrations grow 15% as SMMT calls for VAT fairness

src="images/Rishi-Sunak-MUST-cut-VAT-on-fuel-to-help-drivers-hit-by-record-pump-prices.avif" alt="Rishi Sunak MUST cut VAT on fuel to help drivers hit by record pump prices, RAC says" class="vat-rate-pic">

Rishi Sunak MUST cut VAT on fuel to help drivers hit by record pump prices

src="images/Accountant-tried-to-steal-more-than-£73,000-in-VAT-fraud.avif" alt="Accountant tried to steal more than £73,000 in VAT fraud" class="vat-rate-pic">

Accountant tried to steal more than £73,000 in VAT fraud

src="images/Rishi-Sunak-faces-calls-to-cut-VAT-on-fuel-as-retailers-defend-necessary-pump-price-hikes.avif" alt="Cost of living: Rishi Sunak faces calls to cut VAT on fuel as retailers defend 'necessary' pump price hikes" class="vat-rate-pic">

Cost of living: Rishi Sunak faces calls to cut VAT on fuel as retailers defend 'necessary' pump price hikes

src="images/Car-industry-calls-for-VAT-fairness-on-charging-as-February-market-gets-electric-boost.avif" alt="Car industry calls for VAT fairness on charging as February market gets electric boost" class="vat-rate-pic">

Car industry calls for VAT fairness on charging as February market gets electric boost

What users are saying

Vatulator's reviews & testimonials: see what other are saying. You can also leave
your review here or on class="link-review">Smart Reviews, target="_blank" rel="noopener" class="link-review">Trustpilot, href="https://www.g2.com/products/vatulator/reviews" target="_blank" rel="noopener" class="link-review">G2
or class="link-review">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
target="_blank"
class="link-review">https://www.softpedia.com/get/Others/Finances-Business/VATulator.shtml

Admin

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 href="https://vatulator.co.uk/ie/" class="link-review">Irish users. There is also a href="https://vatulator.co.uk/ua/" class="link-review">Ukrainian and a class="link-review">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.

Daria

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 href="https://freeappsforme.com/vat-calculator-review/" rel="noopener" target="_blank"
class="link-review">https://freeappsforme.com/vat-calculator-review/

Alex

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.