VAT Calculator

This online calculator shows you how to calculate VAT from a net or gross figure.

Simply enter the net or gross value, and the form will automatically calculate the relevant values.

Input Amount £:
VAT Rate (%):

Exclude VAT:

Less VAT:

Add VAT:

Add VAT:

Current and Historical Rates

The Current Standard Rate is 20%

The current system was introduced just after the UK's entry into the European Economic Community (EEC) on 1st January 1973. It replaced the previous Purchase and Selective Employment Tax. The Chancellor announces any changes during The Budget or Autumn Statements.

Historical VAT Rates

Rates across Europe vary with Germany at 19%, France at 20%, Ireland at 23% and Italy 22%. The lowest tax rate is in Liechtenstein and Switzerland at just 8%. Other countries including the 52 states in the USA may have different sales tax charges.

Exceptions from the Standard Rate

Most exceptions incur a lower rate of tax as follows:

Businesses not registered for VAT should not charge it for sales invoices. You have to register if your turnover for the previous 12 months or 30 day period is over a certain threshold. The current threshold is £82,000 for the tax year ending April 5th, 2016.

Most businesses complete a VAT return each quarter. If output tax exceeds input tax, then the difference is paid to HM Revenue and Customs (HMRC). If the reverse is true, then HMRC provide a refund.

Add a Calculator Widget to Your Website

Copy and paste the following code into your website. The widget as shown will appear on your site and work as it is here.

We host this calculator so it won't impact your web performance at all. If the rates ever change we simply update our code and your website will automatically have the changes too!

The code must appear exactly as it does above. Otherwise, it won't work. If you like this widget, you may also like our mortgage repayment calculator widget that you can also add for free to your website.

How to Calculate Results at the Current Rate of 20%

Deducting VAT

If you have a gross amount and want to determine the net value, then simply divide the gross value by 1.20 to provide the net value. For example, an invoice that includes VAT totalling £150 would have a VAT amount of £25 with the net value at £125. This result is calculated by dividing £150 by 1.2 which gives the net value of £125 with the difference being the tax at 20%.

Adding VAT

If you have a figure you want to add VAT against, multiply by 0.20% to find the VAT value or 1.20 to find the gross value including VAT. For example, an invoice of £125 multiplied by 20% provides a VAT figure of £25.

The net amount is the value you use in your accounts for purchases and sales if you're a VAT registered company.

This page was last reviewed on 18th September 2015 and has the latest rates from HMRC.