VAT Calculator UK
Free VAT calculator online for UK businesses and individuals. Add or remove VAT instantly with our easy-to-use VAT calculator. Updated for 2025 VAT rates.
VAT Calculator Online
Use our VAT calculator to add or remove VAT from any amount. Simply enter your figure and select whether you want to add or remove VAT from price. Perfect for issuing VAT invoices and managing your business finances.
Calculation History
Keep track of all your VAT calculations for easy reference and VAT expense reclaim record-keeping.
How to Use the VAT Calculator
Input the amount you want to calculate VAT for using our VAT calculator online
Choose 20% (standard), 5% (reduced), or custom rate for your calculation
Click "Add VAT" or "Remove VAT" to remove VAT from price and get your result
UK VAT Rates 2025
Understanding UK VAT rates is essential for accurate tax calculations. Here are the current rates:
Standard Rate
20%Applies to most goods and services sold in the UK. This is the default rate used by most businesses.
- Most goods and services
- Restaurant meals
- Hotels and accommodation
- Professional services
Reduced Rate
5%Applied to specific essential goods and services to reduce the tax burden on necessities.
- Domestic fuel and power
- Children's car seats
- Women's sanitary products
- Home energy installations
Zero Rate
0%No VAT is charged, but businesses can still reclaim VAT on related expenses.
- Children's clothing and shoes
- Books and newspapers
- Food (except restaurant meals)
- Exports outside the UK
Need more details? Our comprehensive UK VAT rates guide covers all rate categories, exemptions, and recent changes to VAT rates.
What is VAT?
Value Added Tax (VAT) is an indirect tax charged on goods and services sold in the UK. Introduced in 1973 as a replacement for Purchase Tax, VAT is collected by businesses on behalf of HM Revenue and Customs (HMRC).
Current Standard Rate
20% (increased from 17.5% on 4 January 2011)
Registration Threshold
£90,000 annual taxable turnover (2025)
Collected By
VAT-registered businesses on behalf of HMRC
Paid By
End consumers through purchase prices
Key VAT Concepts
VAT Registration Requirements
Understanding when and how to register for VAT is crucial for UK businesses. You must register for VAT if your taxable turnover exceeds £90,000 in a 12-month period.
When Should You Register for VAT?
- Mandatory: Taxable turnover exceeds £90,000 in 12 months
- Voluntary: You can register below the threshold
- Freelancers: Special considerations apply - see our VAT guide for freelancers
Once Registered, You Must:
- Charge VAT on taxable sales
- Submit quarterly VAT returns
- Keep detailed VAT records
- Display your VAT number on VAT invoices
- Comply with Making Tax Digital requirements
Ready to register? Follow our comprehensive step-by-step VAT registration guide for detailed instructions.
Manual VAT Calculation Methods
While our VAT calculator online does the work for you, understanding the VAT calculation formulas is essential for business owners. Here are the key methods to add or remove VAT:
Adding VAT (Net to Gross)
Use this when you know the price excluding VAT and need the total price including VAT for your VAT invoice.
Remove VAT (Gross to Net)
Use this to remove VAT from price when you have a VAT-inclusive amount and need to find the net value.
VAT Amount Only
Use this to calculate just the VAT portion for your VAT invoice or accounting records.
Need more examples? Our detailed VAT calculation guide includes advanced examples and best practices for VAT accounting.
VAT Schemes for UK Businesses
HMRC offers several VAT schemes to simplify accounting for different types of businesses. Choose the right scheme to reduce administrative burden:
Flat Rate VAT Scheme
Pay a fixed percentage based on your business type instead of calculating VAT on individual transactions. Includes a 1% discount in your first year of VAT registration.
Annual Accounting Scheme
Submit one annual VAT return instead of quarterly returns, with monthly or quarterly advance payments.
Cash Accounting Scheme
Account for VAT when you actually receive or pay money, rather than when invoices are issued.
Specialized VAT Schemes
Point of Sale, Apportionment, and Direct Calculation schemes for retailers
Special rules for second-hand goods, works of art, and antiques
Flat Rate VAT Scheme Calculator
The Flat Rate VAT Scheme allows eligible businesses to pay a fixed rate of VAT based on their business type, rather than calculating VAT on individual transactions. This simplifies VAT accounting for small businesses.
Flat Rate VAT Benefits:
No need to track VAT on individual purchases and sales
Less record-keeping requirements compared to standard VAT
Potential to keep more money in your business
1% discount in first year of VAT registration
Flat VAT Rates by Business Category
The following table shows the UK VAT percentage rate for different business types. Note that to qualify for these reduced flat VAT rates, your business must be registered for HMRC's flat rate VAT scheme.
Eligibility: Available to businesses with annual taxable turnover of £150,000 or less. Learn more about eligibility criteria and how to apply.
VAT Calculator for Business Use
Our VAT calculator online is essential for various business activities and helps ensure compliance with UK tax regulations. Use it to add or remove VAT for all your business needs:
VAT Invoice Creation
Calculate the correct VAT amount to charge on your VAT invoice and ensure compliance with VAT invoicing regulations. Include all required information such as VAT numbers and invoice details.
VAT Returns & Submissions
Verify VAT calculations before submitting your quarterly VAT return to HMRC. Use our VAT calculator to ensure accuracy and avoid penalties.
Remove VAT from Expenses
Remove VAT from price on business expenses to determine how much VAT you can reclaim. Keep accurate records for VAT recovery purposes.
Pricing Strategy
Work out VAT-inclusive prices for your products and services using our VAT calculator online. Essential for retail businesses and B2C sales.
Making Tax Digital Compliance
Keep digital records of your VAT calculations as part of Making Tax Digital requirements. Our calculation history feature helps maintain compliance records for your VAT invoices.
Essential VAT Resources
Expand your VAT knowledge with our comprehensive guides covering all aspects of UK VAT:
VAT Fundamentals
VAT Registration & Returns
VAT Calculator FAQ
What is the current VAT rate in the UK?
The standard VAT rate in the UK is 20%. There's also a reduced rate of 5% for certain goods and services, and a zero rate (0%) for items like children's clothing and books. See our complete VAT rates guide for details.
How do I remove VAT from price using your calculator?
To remove VAT from price, simply enter the VAT-inclusive amount in our VAT calculator online and click "Remove VAT". The calculator will show you the net amount excluding VAT. For manual calculation: divide the gross amount by 1.20 (for 20% VAT).
When do I need to register for VAT?
You must register for VAT if your taxable turnover exceeds £90,000 in a 12-month period. You can also register voluntarily if your turnover is below this threshold.
How do I calculate VAT manually?
To add VAT: multiply the net amount by 1.20 (for 20% VAT). To remove VAT: divide the gross amount by 1.20. Our VAT calculation guide provides detailed formulas and examples.
What information must be included on a VAT invoice?
A VAT invoice must include your VAT number, invoice date, customer details, description of goods/services, VAT rate applied, and VAT amount. Our guide covers all VAT invoice requirements in detail.
Can I use the Flat Rate VAT Scheme?
The Flat Rate VAT Scheme is available to businesses with annual taxable turnover of £150,000 or less. It allows you to pay a fixed percentage based on your business type instead of calculating VAT on individual transactions.
How often do I need to submit VAT returns?
Most VAT-registered businesses must submit quarterly VAT returns. However, if you're on the Annual Accounting Scheme, you only submit one return per year.