UK VAT Calculator
Add VAT to a net price or work out VAT backwards from a gross amount in seconds — perfect for supplier invoices and receipts. Free, instant, and calculated entirely in your browser.
How to Calculate VAT: The Complete Guide
Value Added Tax (VAT) is a consumption tax added to most goods and services in the UK. Whether you are a sole trader raising an invoice, a contractor checking a receipt, or a business owner reconciling your books, the maths comes down to two operations: adding VAT to a net (pre-tax) amount, and removing VAT from a gross (tax-inclusive) amount. Here are the exact formulas.
Adding VAT
You know the net price and want the total.
VAT = Net × (Rate ÷ 100)
Gross = Net × (1 + Rate ÷ 100)
Worked example — £1,000 net at the standard 20% rate:
VAT = £1,000 × 0.20 = £200
Gross = £1,000 × 1.20 = £1,200
Removing VAT
You know the gross price and want the net.
Net = Gross ÷ (1 + Rate ÷ 100)
VAT = Gross − Net
Worked example — £1,200 gross at the standard 20% rate:
Net = £1,200 ÷ 1.20 = £1,000
VAT = £1,200 − £1,000 = £200
UK VAT Rates
Current rates (2026)
| Rate | % | Applies to |
|---|---|---|
| Standard rate | 20% | Most goods and services |
| Reduced rate | 5% | Home energy, children's car seats, some renovations |
| Zero rate | 0% | Most food, books, children's clothing, public transport |
Historical standard VAT rate
How the UK standard rate has changed since VAT was introduced.
| Effective from | Standard rate | Notes |
|---|---|---|
| 1 April 1973 | 10% | VAT introduced in the UK |
| 29 July 1974 | 8% | Standard rate reduced |
| 18 June 1979 | 15% | Raised in the Budget |
| 1 April 1991 | 17.5% | Raised to fund poll-tax cut |
| 1 December 2008 | 15% | Temporary cut (financial crisis) |
| 1 January 2010 | 17.5% | Standard rate restored |
| 4 January 2011 | 20% | Current standard rate |
The VAT registration threshold has been £90,000 (rolling 12-month turnover) since 1 April 2024.