Introduction
This free VAT calculator lets you add or remove VAT from any amount in seconds. VAT stands for Value Added Tax. It is a tax added to the price of goods and services in many countries, including the UK and most of Europe. Our tool supports the standard UK VAT rate of 20%, the reduced rate of 5%, and the zero rate of 0%. You can also pick from common global rates or type in your own custom rate.
To use the calculator, choose whether you want to add VAT to a net price or remove VAT from a gross price. Then enter your amount, select your VAT rate, and see your results right away. The calculator shows you the net amount, the VAT amount, and the gross total. It also gives you a clear step-by-step breakdown of the math and a chart that shows how much of the total price is tax.
Whether you run a small business, work in accounting, or just need to check a receipt, this VAT calculator makes the job quick and simple. Select from seven currencies, copy results to your clipboard with one click, and use the number pad or your keyboard to enter values fast.
How to Use Our VAT Calculator
Enter your amount, pick a VAT rate, and choose whether to add or remove VAT. The calculator will show you the net price, VAT amount, and gross total right away.
Choose your calculation mode. Click "Add VAT" if you have a price without tax and want to find the total. Click "Remove VAT" if you have a price that already includes tax and want to find the original amount.
Select your currency. Use the dropdown menu to pick your currency. You can choose from British Pound, US Dollar, Euro, and other major currencies. If you need to convert between currencies, try our currency calculator.
Enter your amount. Type your number using the on-screen keypad or your keyboard. The display will update as you type. Press "C" to clear the entry or "⌫" to delete the last digit.
Set your VAT rate. Pick a common rate from the preset buttons, drag the slider, or type an exact percentage in the rate box. The UK standard rate of 20% is selected by default.
View your results. Click "Calculate" or watch the results update live as you type. You will see the net amount, VAT amount, and gross total. Use the copy buttons to copy any result to your clipboard. A step-by-step breakdown and pie chart are shown below the results.
What Is VAT?
VAT stands for Value Added Tax. It is a tax added to the price of most goods and services when you buy them. The business collects this tax from you and then pays it to the government. VAT is used in over 160 countries around the world, including the United Kingdom, all European Union member states, Australia, Canada, and Japan. In countries like Australia and Canada, a similar consumption tax is known as the Goods and Services Tax — you can calculate it with our GST calculator. In the United States, a comparable levy at the point of sale is handled through our sales tax calculator.
How Does VAT Work?
When a product costs £100 and the VAT rate is 20%, the shop adds £20 in tax. You pay £120 in total. The £100 is called the net price (the price before tax). The £20 is the VAT amount. The £120 is called the gross price (the price after tax). If you frequently need to convert between net and gross figures, our net to gross calculator is another handy tool. Every time a product moves from one business to another, VAT is charged at each step. But businesses can claim back the VAT they paid, so the final customer is the one who truly pays it.
UK VAT Rates
In the United Kingdom, there are three main VAT rates:
- Standard rate — 20%: This applies to most goods and services.
- Reduced rate — 5%: This applies to some items like home energy, child car seats, and certain health products.
- Zero rate — 0%: This applies to essentials like most food, children's clothing, and books. The tax is technically charged, but at 0%.
Adding vs. Removing VAT
There are two common calculations people need to do. Adding VAT means you start with the net price and want to find the total price including tax. You multiply the net price by the VAT rate and add it on. Removing VAT means you start with the gross price and want to find out how much of it is tax. You divide the gross price by 1 plus the rate to get the net amount. This reverse calculation works the same way as a reverse tax calculator.
Who Needs to Calculate VAT?
Small business owners, freelancers, and accountants calculate VAT every day. If your business earns more than the VAT threshold, you must register for VAT and charge it on your sales. You also need to file VAT returns with HMRC. Freelancers and sole traders should also consider their broader tax obligations using a self-employment tax calculator, and business owners may find a corporation tax calculator useful at year-end. To understand your overall take-home earnings after VAT, income tax, and National Insurance, check out our take-home pay calculator. Shoppers may want to calculate VAT to understand how much tax they are paying on a purchase or to compare prices across countries with different tax rates. For a broader look at how different taxes affect your finances, our tax calculator can help.