Free VAT Calculator Online

Instantly calculate VAT. Add VAT to a net amount or remove VAT from a gross amount. Simple, fast, and 100% free, no signup required.

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Net Amount
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VAT Amount
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Gross Amount

What is VAT?

Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.

Understanding VAT in the UK

Value Added Tax (VAT) was introduced in the United Kingdom on April 1, 1973, replacing the Purchase Tax. It is the third-largest source of government revenue after Income Tax and National Insurance.

How VAT Registration Works

Businesses in the UK must register for VAT if their VAT-taxable turnover exceeds £90,000 (as of 2024/25). Registered businesses must charge VAT on their goods and services and can reclaim VAT paid on business expenses.

Reviewed by Tax & Accounting Experts

This VAT Calculator is reviewed and maintained by Thinkogic’s finance professionals to ensure accuracy as per the latest UK VAT regulations. Thinkogic is not liable for any decisions or results based on the use of this calculator.

Last updated: January 2026 | VAT rates verified as per latest notifications

How can you calculate VAT with this tool?

Step 1 - Choose Operation

Select "Add VAT" if you have a net amount and want to add tax. Select "Remove VAT" if you have a gross amount and want to find the tax.

Step 2 - Enter Amount

Input the Net Amount (for Add VAT) or the Gross Amount (for Remove VAT) into the amount field.

Step 3 - Select VAT Rate

Choose the applicable VAT rate (e.g., Standard 20%, Reduced 5%) from the dropdown menu.

Step 4 - View Results

The calculator instantly updates to show the Net Amount, VAT Amount, and Gross Amount.

There are types of VAT active. They are:

Standard Rate (20%)

  • Rate: 20%
  • Applicability: Applies to most goods and services that are not subject to reduced or zero rates.
  • Examples: Electronics, clothing (adults), consulting services, alcohol.

Reduced Rate (5%)

  • Rate: 5%
  • Applicability: Applies to specific goods and services considered essential or beneficial.
  • Examples: Home energy, children's car seats, mobility aids for the elderly.

Zero Rate (0%)

  • Rate: 0%
  • Applicability: Goods that are taxable but at a 0% rate (distinct from exempt).
  • Examples: Books, newspapers, children's clothes, basic food items.

Exempt

  • Rate: N/A
  • Applicability: Goods and services that are completely outside the VAT system.
  • Examples: Insurance, postal services, health services, education.

How Does the VAT Calculator Work? | VAT Formula

The VAT Calculator uses two simple formulas depending on whether you are adding VAT to a net price or removing it from a gross price.

Add VAT (Net to Gross)

VAT Amount = Net Amount × (VAT Rate / 100)

Gross Amount = Net Amount + VAT Amount

Used when prices are quoted "Exclusive of VAT".

Remove VAT (Gross to Net)

Net Amount = Gross Amount / (1 + (VAT Rate / 100))

VAT Amount = Gross Amount - Net Amount

Used when prices are quoted "Inclusive of VAT" (e.g., retail prices).

Why Use Our Free VAT Calculator?

100% Accuracy

Our tool uses precise mathematical formulas to ensure every calculation is correct down to the penny. No more manual errors or guessing.

Instant Results

Get results in milliseconds. Toggle between "Add VAT" and "Remove VAT" instantly without reloading the page.

Up-to-Date Rates

We automatically apply the current UK VAT rates (20%, 5%, 0%), so you never have to worry about using outdated percentages.

Privacy Focused

All calculations happen right in your browser. We do not store or transmit your financial data to any server.

Exempt vs. Zero-Rated: What's the Difference?

Many people confuse "Zero-Rated" goods with "Exempt" goods. While both result in no VAT being charged to the customer, they have different implications for businesses.

Zero-Rated (0%)

Tax charged 0%
Can businesses reclaim VAT? YES

Goods are still "taxable", but the rate is currently 0%. Businesses selling zero-rated items can register for VAT and reclaim input tax on their expenses.

Examples: Books, newspapers, children's clothes, most human food (excluding catering/restaurants), prescription medicines.

Exempt

Tax charged None
Can businesses reclaim VAT? NO

Goods are typically outside the scope of VAT. Businesses that strictly sell exempt goods cannot register for VAT and cannot reclaim VAT on business purchases.

Examples: Financial services, insurance, postage stamps, health services provided by doctors, betting and gaming.

Frequently Asked Questions

What is VAT?
VAT (Value Added Tax) is a consumption tax charged on most goods and services. It is collected by businesses on behalf of the government.
What are the Standard, Reduced, and Zero VAT rates?
The Standard rate is 20% (most goods). The Reduced rate is 5% (home energy, child car seats). The Zero rate is 0% (books, children's clothes, most food).
How do I remove VAT from a total price?
To remove VAT, divide the total price by 1.20 (for 20% VAT). For example, £120 / 1.20 = £100. The calculator does this automatically with the "Remove VAT" option.
Is this calculator free to use?
Yes, Thinkogic's VAT Calculator is completely free to use. There are no hidden charges or fees.
How can I claim a VAT refund?
If you are a VAT-registered business, you can reclaim VAT paid on goods and services used for your business by including them in your VAT Return to HMRC. If your input VAT (what you paid) exceeds your output VAT (what you charged), HMRC will refund the difference.
Do I have to pay VAT on imported goods?
Yes, VAT is generally due on goods imported into the UK from outside the UK. The standard rate of 20% usually applies, which is calculated on the total value of the goods plus shipping and duty.
What is the VAT rule for digital services?
If you sell digital services (e.g., e-books, software) to consumers in the UK from abroad, you must charge UK VAT. Conversely, UK businesses selling to consumers in the EU/abroad must follow the VAT rules of the customer's country ("Place of Supply" rules).