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VAT calculator

Add VAT to a net price, or strip VAT out of a gross price. Enter an amount and pick a rate.

£
Gross (inc. VAT)
£120.00
Net (ex. VAT) £100.00
VAT amount £20.00

How VAT works, briefly

VAT is added on top of a net price. At the 20% standard rate, a £100 net item becomes £120 gross, with £20 of VAT. To remove VAT from a £120 gross price you divide by 1.2, not subtract 20%, which is why a calculator helps.

You only charge VAT once your taxable turnover passes the UK registration threshold. Thresholds and rates change, so always confirm the current figures on GOV.UK. Learn the basics in our VAT glossary entry.

Next steps

Copy a template

TemplateInvoice templateA UK invoice with every required detail

Read the guide

GuideHow to write an invoice (+ exactly what it must include)A simple guide to writing your first invoice in the UK, the details it legally needs, how to number it, and how to actually get paid on time.GuideA self assessment tax return, explained simplyWho needs to file a self assessment tax return, every deadline, what to gather, the penalties, payments on account, and how to make next year painless. 2025/26 return, 2026/27 rates.

What the words mean

TermVAT (Value Added Tax)A tax added to most goods and services, which some businesses must charge.TermVAT registration thresholdThe turnover at which charging VAT stops being optional.TermVAT Flat Rate SchemeA simplified VAT scheme where you pay a fixed percentage of turnover instead of doing the full sum.TermMaking Tax Digital (MTD)A UK initiative requiring digital records and software for tax submissions.
Invoicing with VAT, done right.

handles VAT on invoices, tracks what you owe, and keeps it ready for filing. Free to start.

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This tool is for guidance only and not tax advice. Check GOV.UK or an accountant for your situation.