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Input the transaction amount, select the applicable VAT rate and whether you want to add or exclude VAT
Online VAT Calculator
Tired of spending hours manually calculating VAT for your business transactions? There’s an easier way.
Our online VAT calculator (UK edition) helps work out how much tax you need to add to your prices. It’s simple and easy to use, so you can accurately calculate your VAT amount in just a few clicks.
VAT Calculator
Add or Remove Value Added Tax
VAT Calculator
20% VAT Excluded
Amount Entered : £500,000.00
VAT Excluded Amount : £83,333.33
Net Amount : £416,666.67
Key :
Amount Entered
VAT Excluded Amount
Net Amount
How it works
VAT FAQ’s
Value Added Tax (VAT) can be confusing as not every business charges VAT – only those turning over enough to be VAT-registered. The rate of VAT then depends on the product you’re selling or service you’re providing.
The standard rate of VAT is currently 20%. This rate should be used unless the goods or services are classed as reduced (5% VAT) or zero-rated.
Some products are also exempt from VAT, things like postage stamps and insurance.
Read HMRC’s guide to VAT rates on different goods and services for the full list (link to HMRC page: https://www.gov.uk/guidance/rates-of-vat-on-different-goods-and-services)
Small businesses and freelancers need to keep track of their finances. Accurately calculating VAT is essential to making sure you’re pricing your products and services competitively, whilst remaining compliant with UK tax regulations.
Using our reliable and easy-to-use online VAT calculator can provide businesses with an accurate breakdown of the total price, including VAT amount. This is handy when generating invoices for your customers.
VAT is added at every step of the supply chain and then passed on to the final customer – it isn’t a tax on profits.
For example, when a VAT-registered business buys supplies or materials from a VAT-registered supplier, they’ll need to pay VAT (this is input VAT) which they can then claim back from HMRC.
When that business then uses those supplies or materials to create a product, they’ll charge VAT on top of the price of the product (this is output VAT).
Businesses must then include the output VAT in their VAT return to HMRC.
Yes, our calculator can work out 5% VAT.
If your business turns over more than £85,000 a year then it is compulsory to register. If your business turnover is less than that then you can still voluntarily register for VAT.