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VAT Calculator | Free UK VAT Calculator 2026

Calculate VAT inclusive and exclusive prices for UK businesses

£

Enter the net price (before VAT)

%

Or enter a custom VAT percentage

VAT Amount

The VAT to add to your net price

£0.00

Total Including VAT

This is the gross price your customers pay

£0.00

Price Excluding VAT

If your input already includes VAT, this is the net amount

£0.00

How to Use This VAT Calculator

This free VAT calculator helps UK businesses quickly calculate VAT on prices. Whether you need to add VAT to a net price or remove VAT from a gross amount, this tool does the maths instantly.

  1. Enter your amount: Type the price you want to calculate VAT for.
  2. Select the VAT rate: Choose 20% (standard), 5% (reduced), 0% (zero-rated), or enter a custom percentage.
  3. Read your results: See the VAT amount, total with VAT, and price excluding VAT.

Who Is This VAT Calculator For?

  • Freelancers and sole traders: Calculate VAT to add to your invoices.
  • Small business owners: Price products correctly for retail or wholesale.
  • Accountants and bookkeepers: Quickly check VAT calculations.
  • Online sellers: Ensure your eBay, Etsy, or Amazon prices include correct VAT.
  • E-commerce businesses: Display VAT-inclusive or exclusive prices depending on your customer (B2C vs B2B).

UK VAT Rates Comparison

RatePercentageApplies To
Standard20%Most goods and services
Reduced5%Home energy, child car seats, some renovations
Zero0%Most food, children's clothing, books, newspapers
ExemptN/AInsurance, healthcare, education, finance

VAT Calculator FAQs

What is the current UK VAT rate?

The standard UK VAT rate is 20%. There is also a reduced rate of 5% for items like home energy and child car seats, and a zero rate (0%) for essential items like most food and children's clothing.

How do I calculate VAT from a gross amount?

To remove VAT from a price that already includes it, divide the total by 1.20 (for 20% VAT). For example, if an item costs £120 including VAT, the price excluding VAT is £120 / 1.20 = £100, and the VAT portion is £20.

When do I need to register for VAT in the UK?

You must register for VAT if your taxable turnover exceeds £85,000 in a 12 month period (as of 2024/2025). You can also voluntarily register below this threshold, which can be beneficial if you sell to other VAT-registered businesses.

Can I claim back VAT on business purchases?

Yes, if you are VAT registered, you can reclaim VAT on business expenses through your VAT return. This is called "input VAT". You pay HMRC the difference between VAT you charged customers and VAT you paid on purchases.

What is the difference between VAT inclusive and exclusive prices?

VAT inclusive means the price already includes VAT (the final price customers pay). VAT exclusive means VAT needs to be added on top (common in B2B pricing). Our calculator shows both so you can quote prices correctly.

How often do I need to submit a VAT return?

Most businesses submit VAT returns quarterly (every 3 months). You must file and pay within one month and 7 days of the end of your VAT period. You can use software like Xero, QuickBooks, or FreeAgent to make submissions.

What items are VAT exempt in the UK?

VAT exempt items include insurance, finance/credit, education and training (in some cases), healthcare provided by registered practitioners, and certain property transactions. Exempt is different from zero-rated.

Is VAT the same as sales tax?

VAT and sales tax both add to the price of goods, but they work differently. VAT is collected at each stage of production and distribution. Sales tax is only collected once at the final sale. The UK uses VAT; the US uses sales tax.