VAT calculator for the UK
Add VAT to a net price, or take it out of a gross price, at 20%, 5%, 0% or any rate you choose.
This calculator is a guide only and runs in your browser, so nothing you enter is sent anywhere. Check the VAT treatment of your goods and services with HMRC or your accountant.
How UK VAT works
VAT is a tax on most goods and services. The standard rate is 20%, a reduced rate of 5% applies to some items, and some are zero-rated. If you are VAT registered you charge VAT on your sales, reclaim the VAT you pay on business purchases and send the difference to HMRC in a VAT return. Our guide to the nine boxes of a VAT return explains how the figures fit together.
Two formulas to remember
- Net to gross: net × 1.20 = gross (at 20%).
- Gross to net: gross ÷ 1.20 = net (at 20%).
Let accounting software do it for you: in AvrioBooks you set tax rates once and VAT is calculated on every invoice and bill. See VAT/GST returns or compare plans.
VAT questions
What is the standard rate of VAT in the UK?
The standard rate is 20%. A reduced rate of 5% applies to some goods and services such as domestic fuel, and some items are zero-rated (0%) or exempt. Check GOV.UK for how your products are classed.
How do I add VAT to a price?
Multiply the net price by 1.20 for 20% VAT. For example, £100 net becomes £120, of which £20 is VAT.
How do I take VAT out of a gross price?
Divide the gross price by 1.20 for 20% VAT. For example, £120 gross becomes £100 net, with £20 VAT. Do not just subtract 20%.
When must I register for VAT?
You must register if your taxable turnover goes above the VAT registration threshold, which is £90,000 from 1 April 2024. You can also register voluntarily. Check GOV.UK for the current threshold.
Does AvrioBooks handle VAT?
Yes. Tax rates and VAT returns are included on the Standard plan and above, including Making Tax Digital for VAT, subject to HMRC approval.
Let AvrioBooks handle your VAT
Tax rates, VAT returns and Making Tax Digital for VAT on Standard and above. Try it free for 30 days.
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