VAT Calculator

Add or remove UK VAT at 20%, 5%, 0% or any rate, with the working, HMRC rounding, mixed-rate invoices and a £90,000 registration threshold check.

Reviewed by Dany, RightSums team · Updated

Runs in your browser. Free, no sign-up.

finance · Business · UK

Enter a price and choose Add VAT or Remove VAT to see the net price, the VAT and the gross price at once, with the sum written out: the multiplier for adding VAT and the VAT fraction for taking it off, such as 1/6 at 20% and 1/21 at 5%. Pick 20%, 5%, 0% or your own rate, and round to the nearest penny or down, as HMRC allows invoice traders. The invoice tab works out VAT for up to 50 lines at mixed rates, with a VAT summary per rate like a real invoice, and shows the total under each rounding method in VAT Notice 700. The threshold tab adds up 12 months of taxable turnover against the £90,000 limit and gives your registration deadline and effective date. The Flat Rate Scheme tab compares the scheme with normal VAT accounting for your type of business, including the 16.5% limited cost rate and the 1% first-year discount. Copy any result in one click.

Accepted inputs

  • Add VAT or remove VAT
  • A price excluding or including VAT
  • VAT rate: 20%, 5%, 0% or your own rate
  • Rounding: nearest penny or down to the whole penny
  • Invoice lines: description, quantity, unit price and VAT rate, up to 50 lines
  • Whether invoice prices include VAT, and line or invoice-level rounding
  • Taxable turnover for each of the last 12 months and the next 30 days
  • Flat Rate Scheme: business type, sales by VAT rate, VAT on purchases, spending on goods, first year of registration

Outputs

  • Net price, VAT and gross price
  • The working, with the multiplier and the VAT fraction
  • The same amount at 20%, 5% and 0%
  • Invoice lines with net, VAT and gross per line
  • VAT summary per rate and invoice totals
  • Total VAT under each HMRC rounding method
  • Rolling 12-month turnover against the £90,000 threshold, with the registration deadline and effective date
  • Deregistration check against £88,000
  • Flat Rate Scheme against normal VAT accounting, with the limited cost business test
  • Copy results to the clipboard

How to use the VAT Calculator

  1. Choose Add VAT if your price excludes VAT, or Remove VAT if it already includes it, then enter the amount and pick 20%, 5%, 0% or another rate.
  2. To add VAT the tool multiplies by 1 plus the rate (1.2 at 20%). To remove it, it multiplies by the VAT fraction, the rate divided by 100 plus the rate (1/6 at 20%), as VAT Notice 700 sets out.
  3. VAT is rounded to the nearest penny, or down to the whole penny if you choose, and the working is shown line by line so you can check it.
  4. For an invoice, add lines at different rates: the tool works out VAT per line or on the total, gives a summary per rate and shows each HMRC rounding method side by side.
  5. The other tabs check your rolling 12-month turnover against the £90,000 threshold and compare the Flat Rate Scheme with normal VAT accounting.

Frequently asked questions

How do I calculate 20% VAT?

Multiply the price before VAT by 0.2 to get the VAT, or by 1.2 to get the price including VAT. On £250, the VAT is £50 and the total is £300. To go the other way, divide a VAT-inclusive price by 1.2 for the net price, or by 6 for the VAT alone.

How do I remove VAT from a price?

Divide the price including VAT by 1.2 for 20% VAT, or by 1.05 for 5% VAT. A £300 price including 20% VAT is £250 before VAT, with £50 of VAT. Taking 20% off £300 gives £240, which is wrong, because VAT is 20% of the net price, not the gross price.

What is the VAT fraction?

The VAT fraction is the share of a VAT-inclusive price that is VAT: the rate divided by 100 plus the rate. According to VAT Notice 700, it is 1/6 for 20% and 1/21 for 5%. Multiply a gross price by the fraction to find the VAT inside it, so £126 at 5% contains £6.

Should VAT be rounded up or down?

HMRC lets invoice traders round the total VAT on an invoice down to a whole penny. Per line, you can round down to 0.1p or to the nearest 1p or 0.5p, as long as you are consistent. Retailers who work out VAT per line or invoice must not round down (VAT Notice 700, 17.5 and 17.6).

How do I show VAT on an invoice with different rates?

Show each line's quantity, VAT rate and amount excluding VAT, then the total VAT in sterling, as VAT Notice 700 paragraph 16.3.1 requires. A summary per rate helps: for example £700 net and £140 VAT at 20%, plus £120 net and £6 VAT at 5%, gives £146 of VAT in total.

When do I have to register for VAT?

You must register if your taxable turnover over the last 12 months goes over £90,000, or you expect it to in the next 30 days alone. According to GOV.UK, you register within 30 days of the end of the month you went over, and registration takes effect from the first day of the second month after.

Is the Flat Rate Scheme worth it?

It depends on your sector rate and how much you spend on goods. If your goods cost less than 2% of your VAT-inclusive turnover, or less than £1,000 a year, you pay the limited cost rate of 16.5%, which often costs more than normal VAT accounting. The Flat Rate Scheme tab compares both for your figures.

What are the UK VAT rates in 2026?

The UK has 3 VAT rates: 20% standard, 5% reduced and 0% zero. According to GOV.UK, the standard rate covers most goods and services, the reduced rate covers things such as home energy and children's car seats, and the zero rate covers most food and children's clothes. Some things, such as postage stamps, are exempt.

Sources

The rates and rules in this tool come from:

Guides that use this tool

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