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Free UK VAT Calculator
Standard & Zero Rates

Instantly calculate how much VAT you owe or can reclaim. Works for standard rate (20%), reduced rate (5%), and zero-rated goods. Trusted by 10,000+ UK businesses and freelancers.

  • HMRC compliant
  • Free to use
  • No sign-up needed

Please enter the below values to calculate the VAT due to HMRC

Sales Summary
£
£
£
£
Total
£
Purchases summary
£
£
£
£
Total
£
VAT due
VAT Amount Due
£
The VAT calculator is for illustrative purposes only, and we do not accept liability for its results. For accurate tax liability calculations, please seek professional advice. Our team is here to help - contact us for a free consultation on using our online VAT calculator effectively.
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How to work out VAT

Working out VAT manually is straightforward once you know which formula to use. There are two scenarios: adding VAT to a net price (exclusive), or extracting VAT from a price that already includes it (inclusive).

Adding VAT (Exclusive)

VAT = Net price × 0.20 Total = Net + VAT

Use when your price does not yet include VAT.

Removing VAT (inclusive)

VAT = Gross ÷ 6 Net = Gross − VAT

Use when a price already includes 20% VAT and you need to separate it out.

Reduced Rate (5%)

VAT = Net price × 0.05 Total = Net + VAT

Applies to items like children's car seats and some energy-saving materials.

Example 1 - adding 20% VAT to a service invoice

Standard rate

A freelance web designer charges a client £1,000 for a project. The invoice is VAT-exclusive, so 20% VAT needs to be added on top.

Net price (ex-VAT) £1,000.00
VAT rate 20%
Calculation £1,000 × 0.20
VAT to charge £200.00
Total invoice amount £1,200.00

Example 2 - extracting VAT from a VAT-inclusive price

Reverse calculation

A shop receipt shows £480 for goods including 20% VAT. You need to find the original net price and the VAT element for your records.

Gross price (inc-VAT) £480.00
VAT rate 20%
Calculation £480 ÷ 6
VAT amount within the price £80.00
Net price (ex-VAT) £400.00

How to use the UK VAT Calculator

Select your VAT
invoice type


Choose whether your figures are VAT-exclusive (net - VAT is added on top) or VAT-inclusive (gross - VAT is already included in the price).

Enter your
sales summary


Input your total sales figures for the VAT period, split by rate. You only need to fill in the boxes that apply to your business - leave the rest as zero.

Check your total
sales figure


The calculator automatically adds up your sales entries and displays a total. Check this matches the total turnover on your records before moving on.

Enter your
purchases summary


Now input your business expenses for the same period, again split by VAT rate. These are the costs on which you can reclaim input VAT from HMRC.

Check your total
purchases figure


As with sales, the calculator totals your purchases automatically. Verify this against your expense records to ensure nothing has been missed before calculating.

Click "Calculate"
to see VAT due


Hit the Calculate button and the tool will instantly display the net VAT due to HMRC - your output tax (VAT on sales) minus your input tax (VAT on purchases).

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UK VAT Rates

HMRC sets five VAT classifications for goods and services sold in the UK. The rate that applies depends on what you're selling - not how you sell it.

VAT Rate Rate (%) What It Applies To
Standard Rate 20% Most goods and services sold in the UK
Reduced Rate 5% Selected essential or socially beneficial goods and services
Zero-Rated 0% VAT is charged at 0%, but sales are still reported on VAT returns
Exempt N/A No VAT is charged, and VAT on related costs cannot be reclaimed
Outside Scope N/A Transactions not covered by the UK VAT system

Let us handle your VAT returns

Preparing and filing VAT returns takes time, and a single mistake can trigger an HMRC investigation. Our qualified accountants manage your VAT compliance end-to-end - from bookkeeping and return preparation to MTD-compliant submission and correspondence with HMRC.

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Frequently asked question

You must register for VAT if your VAT-taxable turnover exceeds the HMRC threshold. You can also register voluntarily if your turnover is lower.

MTD requires businesses to keep digital VAT records and submit VAT returns using compatible software. It applies to most VAT-registered businesses.

The Flat Rate Scheme allows eligible small businesses to pay a fixed VAT percentage based on their industry. It can simplify VAT reporting.

Yes, you may be able to reclaim VAT on certain business purchases made before registration, subject to HMRC rules and time limits.

It depends on where your customers are located and what you sell. Different VAT rules apply to international sales.


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