VAT Calculator
Gross Price: $1,440.00
- Net price
- $1,200.00
- VAT rate
- 20%
- VAT amount
- $240.00
- Gross price
- $1,440.00
VAT breakdown
| Item | Amount | How it is calculated |
|---|---|---|
| Net price | $1,200.00 | Before VAT |
| VAT amount | $240.00 | Net × 20% |
| Gross price | $1,440.00 | Net + VAT |
Net price vs VAT amount
What this calculator does
The VAT Calculator adds or removes UK Value Added Tax. The standard rate is 20%, the reduced rate is 5%, and some goods and services are zero-rated.
Use it to find the VAT included in a gross price, or to add VAT to a net price before invoicing.
How to use this calculator
- Choose Add VAT or Remove VAT.
- Enter the net or gross amount.
- Enter the VAT rate. Use 20% for the standard rate and 5% for the reduced rate.
- Click Calculate.
Formula
VAT amount = net price × rate ÷ 100
Gross price = net price + VAT amount
Net price = gross price ÷ (1 + rate ÷ 100)
What the results mean
The result card shows the net price, the VAT rate, the VAT amount, and the gross price.
Assumptions and limitations
- The calculator applies the rate you enter. It does not decide which rate applies to a particular supply.
- Zero-rated and exempt supplies, partial exemption, VAT margin schemes, and cross-border rules are not modeled.
- Rates can change. Confirm the current rate with HM Revenue & Customs.
Frequently asked questions
What is the standard UK VAT rate?
The standard rate is 20%. A reduced rate of 5% applies to certain goods and services, and some supplies are zero-rated.
How do I remove VAT from a gross amount?
Divide the gross amount by 1 plus the rate as a decimal. At 20%, divide by 1.20.
Is VAT the same as sales tax?
VAT is collected at each stage of the supply chain, while a US-style sales tax is generally collected at the final sale. The arithmetic is similar, but the rules are different.
Source
Reference: GOV.UK — VAT rates.
Disclaimer
This calculator is for planning and education. It is not tax advice. Confirm registration, rates, and filing obligations with HM Revenue & Customs or a qualified adviser.