VAT Calculator

Net is the price before VAT. VAT is the tax added to that price. Gross is the total including VAT. When adding VAT, the headline is the gross amount to pay; when removing VAT, it is the net price before tax.

Amounts are displayed to the nearest penny, while calculations retain full precision. Independently rounded amounts can occasionally differ by a penny when added together. Invoice rounding methods may also differ.

To add VAT, multiply the net price by the VAT rate expressed as a decimal. Add that VAT amount to the net price to find the gross total.

To remove VAT, divide the gross price by one plus the decimal VAT rate. Subtract the resulting net price from the gross price to find the VAT amount.

Removing 20% VAT is not the same as subtracting 20% of the gross price: the tax was calculated on the smaller net price. £120 includes £100 net plus £20 VAT. Taking 20% off £120 would leave £96, which is not the net price.

• Add VAT: VAT = net × rate; gross = net + VAT.
• Remove VAT: net = gross ÷ (1 + rate); VAT = gross − net.

The calculator uses the centrally maintained, versioned UK VAT rate record linked below. Registration and deregistration thresholds are context only: they do not change the price calculation.

Calculations run locally without sending your amounts to a server. Official rates and custom percentages use the same arithmetic, checked against addition, removal, zero-value and decimal-price examples.

The standard UK VAT rate is 20%, with a reduced rate of 5% and a zero rate of 0%. Which applies depends on the goods or services and sometimes the circumstances of the sale. Check the GOV.UK guidance rather than assuming every sale has the same treatment.

VAT registration is normally required when taxable turnover exceeds £90,000 over a rolling 12-month period, or when you expect it to exceed £90,000 in the next 30 days alone. This is turnover, not profit or a fixed tax-year total. Other registration rules can apply, including to non-established businesses.

You can usually apply to cancel registration if taxable turnover is expected to fall below £88,000. Cancellation is not automatic; check the conditions with HMRC. These thresholds do not determine which VAT rate to charge.

A zero-rated sale is a taxable supply charged at 0%, so it generally counts towards taxable turnover for registration. VAT-exempt supplies are not charged at a taxable VAT rate and generally do not count towards that threshold.

The distinction can affect recovery of VAT on purchases: input VAT related to exempt supplies is generally restricted, while zero-rated activity may allow recovery subject to the normal rules. Selecting 0% here only gives the price arithmetic; it does not classify a supply or establish a right to reclaim VAT.