How this UK VAT calculator works
VAT maths is simple once the starting point is clear. If you begin with a net amount, adding VAT means multiplying by the selected rate and then adding the tax amount to the original figure. If you begin with a gross amount, removing VAT means dividing by 1 plus the VAT rate, not just subtracting the percentage from the total.
This page is designed to make that difference obvious. It is useful for invoices, quotes, bookkeeping checks and quick comparisons, especially when you need a clean breakdown you can paste into notes or email drafts.
For Chinese users, this page can also be used as an 英国VAT计算器, 英国增值税计算器, 英国VAT反推计算器 and 英国发票VAT计算器 because it focuses on adding VAT, removing VAT and explaining the invoice breakdown.
Current UK VAT rates you will see most often
| Rate type | Rate | Typical use |
|---|---|---|
| Standard rate | 20% | Most goods and services. |
| Reduced rate | 5% | Selected supplies such as some home energy and children's car seats. |
| Zero rate | 0% | Selected supplies such as most food and children's clothes. |
Zero-rated is not the same as exempt
A 0% result in a calculator only means the arithmetic tax rate is zero. In VAT treatment, zero-rated, exempt and outside-scope supplies are different categories. This page helps with the numbers, but the classification still depends on the supply itself and HMRC rules.
When businesses usually need to register for VAT
Many small businesses use a VAT calculator before they register, simply to model future invoices or understand prices. Registration rules depend on taxable turnover over a rolling 12-month period, so the threshold matters if you are close to the limit.
How do I remove 20% VAT from a VAT-inclusive amount?
Divide the gross amount by 1.20. For example, £120 gross becomes £100 net and £20 VAT.
Can I use a custom VAT rate?
Yes. This is helpful for quick maths, international comparisons or checking edge cases, even though UK domestic invoices usually use the standard, reduced or zero rate.
Does this page replace bookkeeping or tax advice?
No. This page is for calculation and explanation. It does not replace VAT registration rules, invoicing requirements or professional advice.