VAT Calculator
A free VAT calculator lets you add VAT to a net price or remove VAT from a gross price in seconds. Whether you invoice clients, check receipts, or compare prices across Europe, you need clear net, VAT, and gross figures. Use the tool above with preset rates for the UK, Ireland, Germany, the Netherlands, Denmark, Sweden—or enter a custom percentage for any jurisdiction.
What is VAT?
Value Added Tax (VAT) is a consumption tax charged at each stage of the supply chain where value is added. In the UK and European Union, businesses registered for VAT typically collect it on sales and reclaim VAT on qualifying purchases. The amount customers pay includes VAT on taxable supplies; the rate depends on the product or service category and the country.
Prices are often quoted excluding VAT (net) in B2B contexts and including VAT (gross) on consumer-facing retail labels. Confusing the two leads to under-quoting, invoice errors, and margin mistakes. A dedicated VAT calculator keeps net, tax, and gross aligned so your figures match what HMRC or your local tax authority expects on returns.
How to Calculate VAT
To add VAT to a net (ex-VAT) amount, multiply the net price by the VAT rate expressed as a decimal, then add that to the net figure—or multiply the net price by (1 + rate).
VAT amount = Net × (Rate ÷ 100)
Gross = Net + VAT amount = Net × (1 + Rate ÷ 100)
Example (UK standard 20%): Net £250 → VAT £50 → Gross £300. For 5% reduced rate on £200 net: VAT = £10, gross = £210. Select your rate from the dropdown, choose Add VAT, and enter the net amount—the calculator updates all three values instantly.
For percentage problems without tax, try our percentage calculator.
How to Remove VAT from a Price
When you only know the gross (inc-VAT) price, do not subtract 20% from the total—that understates the net figure. The correct method is to divide the gross amount by 1 plus the VAT rate as a decimal.
Net = Gross ÷ (1 + Rate ÷ 100)
VAT amount = Gross − Net
Example: A receipt shows £480 inc-VAT at 20%. Net = £480 ÷ 1.20 = £400; VAT = £80. Switch this page to Remove VAT, enter £480, and confirm the split. The same formula works for 23% Irish VAT, 19% German VAT, or any custom rate you select.
VAT Rates by Country in Europe
Standard VAT rates vary by EU member state and the UK. This calculator includes common presets; always verify current rates before filing returns, as governments occasionally adjust them.
| Country / region | Standard rate | Notes |
|---|---|---|
| United Kingdom | 20% | 5% reduced; 0% zero-rated on qualifying goods |
| Ireland | 23% | Reduced rates on specific categories |
| Germany | 19% | 7% reduced rate available |
| Netherlands | 21% | 9% reduced on some supplies |
| Denmark & Sweden | 25% | Among the higher standard rates in the EU |
Use Custom % in the calculator for other countries or special rates. Cross-border B2B sales may follow different rules (reverse charge, MOSS, etc.)—this tool handles arithmetic only; consult a tax adviser for compliance.
Special VAT Schemes for Small Businesses
For small businesses, filing standard VAT returns (calculating VAT on every single sales invoice and reclaiming it on every business expense) can be administratively heavy. Tax authorities like HMRC in the UK offer alternative VAT schemes to simplify accounting:
- Flat Rate Scheme — Instead of paying the difference between sales VAT and purchase VAT, you pay a fixed percentage of your gross turnover to the tax authority. This flat rate depends on your industry sector (e.g., IT consulting vs. retailing). While you cannot reclaim VAT on most purchases, it drastically reduces bookkeeping time and can sometimes save money.
- Cash Accounting Scheme — Under standard VAT, you report tax based on the invoice dates. With cash accounting, you only report VAT on sales and purchases when the money actually changes hands (payment received or paid). This is highly beneficial for cash flow, especially if you have customers who take 30 or 60 days to pay their invoices.
- Annual Accounting Scheme — Rather than submitting quarterly returns, you submit one annual return and make advance payments throughout the year based on the previous year's figures. This helps with predictability and reduces the annual tax-filing burden to a single date.
Frequently Asked Questions
Common questions about UK VAT, adding 20%, removing tax, and exemptions.
What is the standard VAT rate in the UK?
The standard VAT rate in the United Kingdom is 20%. It applies to most goods and services unless a reduced rate (5%), zero rate (0%), or full exemption applies. The reduced rate covers items like home energy, child car seats, and certain renovations. Zero-rated goods include most food, children's clothing, and books. Always confirm the correct rate for your specific product category with HMRC guidance or your accountant, as the rules are detailed and regularly updated.
How do I add 20% VAT to a price?
Multiply the net (ex-VAT) price by 1.20. For example, £100 net becomes £120 gross, with £20 VAT. Alternatively, divide the net amount by 100 and multiply by 20 to find the VAT portion, then add it to the net figure. This works the same for any VAT rate—just replace 20 with your rate and 1.20 with 1 plus your rate as a decimal. Use the Add VAT mode on this calculator to do it instantly without any manual math.
How do I remove VAT from a price?
Divide the gross (inc-VAT) price by 1 plus the VAT rate as a decimal. For 20% VAT, divide by 1.20. A £120 gross price becomes £100 net with £20 VAT. A common mistake is subtracting 20% of the gross price, which gives the wrong answer (£120 minus 20% = £96, not £100). Always divide by 1.20 instead of subtracting 20%. Select Remove VAT on this page and enter your gross amount—the tool splits net and VAT automatically.
Which items are VAT exempt in the UK?
Some supplies are outside the scope of VAT or exempt, including many education services, healthcare, insurance, financial services, and certain residential property transactions. Zero-rated items (0% VAT) still count as taxable supplies but at 0%—such as most unprocessed food, children's clothing, newspapers, and books. The distinction between exempt and zero-rated matters for businesses because zero-rated traders can still reclaim input VAT, while exempt traders cannot. Rules are detailed; check HMRC for your specific case.
What is the difference between VAT and sales tax?
VAT (Value Added Tax) is collected at every stage of the supply chain, with each business paying VAT on its purchases and charging VAT on its sales. The difference is remitted to the tax authority. Sales tax, used in the US, is collected only at the final point of sale to the consumer. The economic effect is similar—the end consumer bears the cost—but VAT offers more audit trail and reduces tax evasion. Over 170 countries use VAT; the United States is one of the few major economies that does not.
What is the VAT registration threshold in the UK?
As of 2024, businesses must register for VAT when their taxable turnover exceeds £90,000 in any rolling 12-month period (or if you expect to exceed it in the next 30 days). Once registered, you must charge VAT on your sales, file quarterly VAT returns, and can reclaim VAT on eligible business purchases. Some businesses choose to register voluntarily below the threshold to reclaim input VAT. Check the current threshold on the HMRC website, as it is reviewed periodically.
Disclaimer: Results are for illustration only—not tax or legal advice. VAT rates and rules change; confirm with your tax authority or adviser before filing.