ezcalcs

Financial

VAT Calculator

Results

Enter values and calculate to see results.

Embed on your site

Any ezcalcs calculator can be embedded with one script tag. Copy the snippet below or use the homepage playground to preview and customize.

<!-- ezcalcs embed: vat-calculator — paste anywhere in the body -->
<script
  async
  src="https://ezcalcs.net/embed.js"
  data-calc="vat-calculator"
  data-theme="light"
  data-width="100%"
  data-height="640"
></script>

Embed page for VAT Calculator

Need a fast, accurate way to calculate VAT? Use the free VAT calculator above to add or remove VAT on any amount in seconds. Enter your figure, choose your VAT rate, and get the net amount, VAT amount, and gross amount instantly.

Whether you're pricing goods and services, preparing an invoice, or checking a supplier's bill, this online VAT calculator does the math so you don't have to.

Free Online VAT Calculator

This free VAT calculator works with any VAT rate. The default is the standard UK VAT rate of 20%, but you can change it to 5%, 0%, or any other rate of VAT used worldwide.

The tool handles two core tasks:

  • Add VAT to a net (excluding VAT) price to find the gross amount
  • Remove VAT from a gross (including VAT) price to find the net amount and the VAT charged

Results update instantly. No sign-up required.

How to Calculate VAT on Any Amount

VAT (value added tax) is a percentage added to the price of goods or services. The calculation itself is simple once you know whether you're working forward (adding) or backward (removing).

Add VAT to a Net Amount

To add VAT to a price excluding VAT, multiply the net amount by the VAT rate expressed as a decimal, then add that to the original price.

Formula:

Gross amount = Net amount × (1 + VAT rate ÷ 100)

Example at the standard rate of 20%:

  • Net amount: £500
  • VAT amount: £500 × 0.20 = £100
  • Gross amount: £500 + £100 = £600

Enter £500 into the calculator, select "Add VAT," and you'll see the same result.

Reverse VAT: Deduct VAT From a Gross Amount

A reverse VAT calculation extracts the VAT from a price that already includes it. This is where people commonly make an error.

Why is "subtract 20%" wrong when removing VAT?

Subtracting 20% from the gross price gives you the wrong answer. If the gross amount is £600 and you subtract 20% (£120), you get £480, not the correct net of £500. That's because 20% of the gross is not the same as the VAT that was added to the net.

Correct formula:

Net amount = Gross amount ÷ (1 + VAT rate ÷ 100)

Example at 20%:

  • Gross amount: £600
  • Net amount: £600 ÷ 1.20 = £500
  • VAT amount: £600 − £500 = £100

The calculator handles this reverse VAT step automatically. Enter the gross price, select "Remove VAT," and the tool divides by 1.20 (or the appropriate factor for your rate) to work out VAT correctly.

UK VAT Rate and Other VAT Rates

Standard Rate, Reduced Rate, and Zero Rate for Goods and Services

The current UK VAT rate structure has three tiers:

RatePercentageApplies to
Standard rate20%Most goods and services sold in the UK
Reduced rate5%Certain goods and services like children's car seats, home energy, and some renovations
Zero rate0%Essential items such as most food, children's clothing, and books

The standard VAT rate of 20% has been in effect since January 2011. VAT was introduced in 1973 as a replacement for purchase tax.

These rates also apply to the Isle of Man, which shares the UK VAT system.

If you deal with international transactions, different countries set their own VAT percentages. Adjust the rate in the calculator to match.

VAT Calculation for Your Invoice

Work Out VAT, Net Amount, and Gross Amount

When invoicing clients, you need to show three figures clearly: the net amount, the amount of VAT charged, and the gross amount.

Here's how to work out VAT on an invoice:

  1. Start with the net price of your goods or services
  2. Multiply by the applicable VAT rate (usually 0.20 for the standard 20%)
  3. Add the VAT amount to the net price to get the gross amount
  4. List all three figures on the invoice

What is a valid VAT invoice vs a receipt?

A valid VAT invoice must include specific details that a standard receipt does not. Key requirements:

  • Your business name, address, and VAT registration number
  • The customer's name and address
  • A unique invoice number
  • The date of supply and the invoice date
  • A description of the goods or services
  • The net amount, VAT amount and VAT rate for each line, and the gross amount
  • The total VAT charged

Without these details, your customer cannot reclaim input VAT on the purchase. A till receipt alone is generally not enough for VAT reclaim purposes above certain thresholds.

Use this calculator to calculate the VAT figures before preparing your invoice.

Calculate VAT Online for Your Business

Do You Need to Register for VAT?

Not every business needs to charge VAT. Registration depends on your taxable turnover.

You must register for VAT if your taxable turnover exceeds the current threshold (£90,000 as of April 2024) in any rolling 12-month period. You can also register voluntarily below the threshold, which lets you reclaim the VAT on business purchases.

Can I reclaim VAT on a car?

Generally, you cannot reclaim VAT on a car unless it is used exclusively for business purposes (for example, a driving instructor's vehicle or a taxi). If the car has any private use, the VAT is not reclaimable. However, you can reclaim VAT on commercial vehicles like vans.

Can I reclaim VAT working from home?

If you're VAT-registered and work from home, you can reclaim the VAT for the business portion of certain costs like phone bills and broadband. The claim must reflect actual business use, not the full household bill.

When You Need to Register and Start Charging VAT

Key registration triggers:

  • Your taxable turnover exceeded the threshold in the past 12 months
  • You expect it to exceed the threshold in the next 30 days alone
  • You receive goods from the EU worth more than the acquisition threshold

Once registered, you must start charging VAT on your invoices from the effective date of registration. HMRC will issue your VAT number, but you should begin charging VAT immediately, even before the number arrives.

Do I have to charge VAT before my VAT number arrives?

Yes. You must charge VAT from your registration date, not the date your VAT registration number is confirmed. Issue invoices showing that a VAT number has been applied for. Once you receive it, update your records and inform customers.

Do I charge VAT when doing business outside the UK?

The rules depend on what you're selling and where the customer is located. For services sold to businesses outside the UK, VAT is generally not charged (the "reverse charge" applies). For goods exported outside the UK, zero-rating usually applies. The rules are complex, so consult HMRC guidance or an accountant for your specific situation.

VAT schemes to consider:

  • Flat rate VAT scheme: Pay a fixed percentage of gross turnover instead of tracking every input and output. Simpler VAT accounting for smaller businesses.
  • Cash accounting scheme: Account for VAT based on payments received and made, not invoice dates.

These schemes can simplify your VAT accounting but may not suit every business.

Free VAT Calculator Limitations

This free VAT calculator is a planning and estimation tool. Keep these points in mind:

  • The calculator uses the rate you enter. Verify you're applying the correct rate for your specific goods or services.
  • It handles one amount at a time. For full invoice or batch calculations, dedicated VAT accounting software may be more practical.
  • VAT rules vary by country and change over time. Always check the current rate and thresholds with your tax authority.
  • This tool does not constitute tax or accounting advice. For questions about VAT registration, reclaiming input VAT, or complex cross-border transactions, consult a qualified accountant or HMRC directly.
  • Certain goods and services have special VAT treatment. The calculator cannot determine which rate applies to a particular product.

Use this calculator to easily calculate VAT for quick checks, quotes, and invoice preparation. For ongoing compliance, pair it with proper VAT accounting records.