VAT Calculator

What Is a VAT Calculator?

A VAT Calculator is an online tool that calculates Value Added Tax (VAT) on a price. It can be used to add VAT to a VAT-exclusive amount or remove VAT from a VAT-inclusive total. The calculator shows the original price, VAT amount and resulting total.

This UK VAT Calculator is designed for common UK VAT calculations and uses the standard 20% VAT rate by default. It also supports the 5% reduced rate, 0% zero rate and custom rates, allowing you to calculate VAT for different transactions.

Why Use This VAT Calculator?

Calculating VAT manually can require different formulas depending on whether the original amount includes VAT. This calculator handles both situations and provides a clear breakdown of the calculation.

How to Use the VAT Calculator

Choose the type of VAT calculation you need, enter the amount and select the applicable VAT rate. The calculator will display the VAT amount and the corresponding price.

1. Choose the calculation type — Select Add VAT if your entered amount is before VAT, or Remove VAT if your entered amount already includes VAT.
2. Enter the amount — Enter the price in pounds in the amount field.
3. Select the VAT rate — Choose 20%, 5%, 0% or enter a custom VAT rate.
4. Calculate the result — Select Calculate VAT to see the VAT amount, VAT-exclusive price and VAT-inclusive total.

How to Calculate VAT in the UK

The formula used to calculate VAT depends on whether the starting price is VAT-exclusive or VAT-inclusive. When adding VAT, the VAT amount is calculated by multiplying the VAT-exclusive price by the VAT rate. For a standard 20% VAT calculation, a £100 price has £20 VAT, producing a VAT-inclusive total of £120.

When removing VAT from a VAT-inclusive amount, the total must be divided by 1 plus the VAT rate. At 20%, a VAT-inclusive price of £120 divided by 1.20 produces a VAT-exclusive price of £100. The difference of £20 is the VAT component.

How to Add 20% VAT

To add 20% VAT to a VAT-exclusive price, multiply the original price by 0.20 to find the VAT amount, then add the VAT to the original price. Alternatively, multiply the VAT-exclusive price directly by 1.20 to obtain the VAT-inclusive total.

How to Remove 20% VAT

To remove 20% VAT from a VAT-inclusive price, divide the total by 1.20. The resulting figure is the VAT-exclusive price. Subtract that amount from the original VAT-inclusive total to determine the VAT amount.

UK VAT Rates and Calculation Examples

The standard VAT rate in the UK is 20%. A reduced rate of 5% applies to certain qualifying goods and services, while some goods and services can be zero-rated. The correct VAT treatment depends on the specific transaction, so the applicable rate should be confirmed before using a calculation for accounting, invoicing or tax purposes.

These examples assume that the full amount is subject to the 20% standard VAT rate and are provided to demonstrate the calculation method. They should not be taken as a determination that a particular product or service is subject to VAT at that rate.

Frequently Asked Questions