This VAT Calculator was established to calculate VAT (Value Added Tax) on invoices or receipts, while also providing guides on VAT rates, the Flat Rate Scheme and help-pages.
Any business or individual can access our handy VAT calculator with the full range of UK and international rates. VAT can be easily added to a net amount or subtracted from a gross amount.
To use the VAT calculator, enter any amount in numbers and then press 'Add VAT' to add VAT to the net amount. Or 'Remove VAT' to remove VAT from the gross amount. Both calculations will show you the gross, net and VAT amount.
It’s a useful tool for calculating VAT in a few seconds. You can also change the VAT rate if it differs from the standard 20%, or for foreign VAT with different rates.
Please check this site regularly to get updates about VAT
The standard VAT rate in the UK is currently 20%, which was increased from 17.5% on 4 January 2011. There is also a reduced rate of 5% on some goods and services such as children’s car seats and home energy. Items such as postage stamps and financial and property transactions are exempt from VAT. Between December 2008 and December 2009 the rate was decreased to 15%, before being put back up to 17.5%.
Value Added Tax, or VAT, was first introduced in 1973 as a replacement for the old ‘Purchase Tax’. It’s charged on goods and services sold in the UK and the Isle of Man. Since its introduction, it has become a major source of revenue for the Government, generating over £170b in 2024–25 and continuing to grow each year.
VAT is currently charged at three separate rates: the standard rate of 20%, a reduced rate of 5%, and the zero rate of 0%. In addition, a selection of goods and services are exempt from VAT. Some are even outside the VAT system entirely, such as goods and services sold outside the European Union.
Since leaving the EU, the UK no longer has to follow guidelines set by Brussels and can, in theory, set rates lower than 15%. While the VAT rate has changed over time, it has recently ranged from 15%–20%. The VAT registration threshold is currently £90,000.
While the debate between supporters and opponents of the VAT system continues, it is important that businesses know what their VAT obligations are. Any inaction could be seen as a criminal act with potentially severe penalties.
Many UK businesses face VAT pressure during periods of reduced cash flow.
Independent advice can help you understand your options.