VAT Calculator
Easily calculate VAT amounts for your business transactions. Add or remove VAT with precision.
Calculation Details
Calculation Type
Enter the amount you want to calculate VAT for.
Your VAT Calculation Results
Net Amount
£0.00
VAT Amount
£0.00
Gross Amount
£0.00
Calculation Details
Calculation Type:Add VAT
VAT Rate:20%
VAT Fraction:1/6
These calculations are provided as guidance only. For financial decisions, please consult with a qualified accountant or tax professional.
Understanding VAT Calculations
VAT (Value Added Tax) is a consumption tax placed on products and services. Our VAT Calculator helps you quickly determine the correct amount of VAT for your transactions.
How VAT Works
VAT is charged at each stage of the production and distribution process. There are three main VAT rates in the UK:
- Standard rate (20%): Applied to most goods and services
- Reduced rate (5%): Applied to certain goods and services like children's car seats and home energy
- Zero rate (0%): Applied to items like most food and children's clothes
Businesses registered for VAT must charge VAT on their goods and services and can reclaim VAT they've paid on business purchases.
How to Use This Calculator
- Choose your calculation type:
- Add VAT: Calculate how much VAT to add to a net amount
- Remove VAT: Extract the VAT amount from a gross (VAT-inclusive) figure
- Enter the amount: Input the value you want to calculate VAT on or from
- Select the VAT rate: Choose from standard options or enter a custom rate
- Choose your currency: Select the currency for your calculation
- Click "Calculate VAT": Instantly see your results
VAT Calculation Formulas
Adding VAT:
To add VAT to a net amount:
Gross Amount = Net Amount × (1 + VAT Rate)
Example with 20% VAT: £100 × 1.2 = £120
Removing VAT:
To extract VAT from a gross amount:
Net Amount = Gross Amount ÷ (1 + VAT Rate)
Example with 20% VAT: £120 ÷ 1.2 = £100
Calculating VAT Amount:
To find the VAT portion:
From Net: VAT Amount = Net Amount × VAT Rate
Example: £100 × 0.2 = £20
From Gross: VAT Amount = Gross Amount - (Gross Amount ÷ (1 + VAT Rate))
Example: £120 - (£120 ÷ 1.2) = £20
VAT Fractions
VAT fractions provide a quick way to calculate VAT from a gross amount:
| VAT Rate | VAT Fraction | Usage |
|---|---|---|
| 20% | 1/6 | Multiply the VAT-inclusive amount by 1/6 |
| 5% | 1/21 | Multiply the VAT-inclusive amount by 1/21 |
| Custom rate (r%) | r/(100+r) | For any rate r, the fraction is r/(100+r) |
Common VAT Scenarios
Business Invoicing:
When creating invoices, businesses need to show the net amount, VAT amount, and total (gross) amount. Use the "Add VAT" option to calculate these figures.
Expense Claims:
When claiming VAT on business expenses, you need to know how much VAT is included in a receipt total. Use the "Remove VAT" option to calculate this.
International Trade:
Different countries have different VAT/sales tax rates. Use the custom rate option for international calculations.
Note: This calculator is designed to provide guidance only. Tax rules can be complex and may change over time. For important financial decisions, we recommend consulting with a qualified accountant or tax professional.