UK VAT Calculator — Add or Remove VAT

The standard UK VAT rate is 20%, applied to most products and services. There is also a reduced rate of 5% for domestic energy, children's car seats, and mobility aids, and a 0% (zero) rate for most food, books, and children's clothing. VAT registered businesses must charge the correct rate on all taxable sales.

To add 20% VAT to a net amount: multiply the net amount by 1.20. Example: net £100 × 1.20 = gross £120. The gross amount VAT-inclusive is £120, with £20 VAT. To work out net amount VAT from a gross price, divide the gross amount by 1.20 — this is called reverse VAT. For the 5% reduced rate, multiply the net by 1.05, or divide the gross amount by 1.05 to remove it.

To calculate the net amount from a gross amount (how do I calculate VAT from gross): divide the gross amount VAT-inclusive by 1.20 for standard rate (gives the net amount VAT-exclusive), or by 1.05 for reduced rate. To find just the VAT portion: subtract the net amount from the gross amount. Example: £120 gross ÷ 1.20 = £100 net. VAT = £120 − £100 = £20. This reverse VAT calculator UK method works for any price.

A reverse VAT calculator UK starts from a gross amount VAT-inclusive and works backwards to find the net amount VAT-exclusive and the exact VAT portion. It is the opposite of adding VAT — instead of multiplying the net, you divide the gross. Use this tool when you've been quoted an all-in price and need to separate the ex-VAT net amount for your invoicing or VAT return.

How do I calculate flat rate VAT: multiply your gross turnover (VAT-inclusive sales) by your industry flat rate percentage. For example, a business with a 14.5% flat rate and £10,000 gross sales pays £1,450 to HMRC. This is simpler than standard VAT accounting because you don't track input VAT on purchases separately. Use our flat rate VAT tool with any gross turnover figure to get an instant result.

The VAT Flat Rate Scheme (FRS) simplifies VAT for businesses with taxable turnover under £150,000. You pay a fixed industry percentage of gross receipts to HMRC instead of standard VAT. However, leaving the scheme makes sense once you buy significant VAT-able goods or services, because under the standard scheme you can reclaim input VAT on purchases. Businesses above £230,000 gross turnover must leave the scheme. Most accountants review FRS annually.

You must register for VAT if your taxable turnover on products and services exceeds £90,000 in any rolling 12-month period. You can also register voluntarily below this threshold — useful if you sell mainly to VAT-registered businesses who can reclaim the VAT you charge. Check gov.uk for the current VAT threshold.