Kalkulo

VAT calculator

Convert a net amount to VAT-inclusive gross or back again, at the UK's 20% standard, 5% reduced or 0% zero rate.

Result
Net
£100
Tax
£20
Gross
£120

About this tool

Why use this tool

The VAT calculator instantly converts a net amount to gross (VAT-inclusive) or vice versa. It's essential for sole traders, freelancers, small businesses and consumers who want to verify an invoice, prepare a quote, understand a receipt or anticipate a VAT return.

How it works

To go from net to gross: Gross = Net × (1 + rate/100). To go from gross to net: Net = Gross / (1 + rate/100). In the UK, the standard rate is 20%, applied to most goods and services. Reduced rate 5% applies to home energy, children's car seats and some renovation work. Zero-rated categories (0%) include most food, books, children's clothing and public transport.

Real example

For a service invoiced at £1,000 net with standard-rate 20% VAT, the gross invoice total is £1,200. The £200 VAT is collected by the business and paid to HMRC on the quarterly VAT return. Conversely, a £60 gross till receipt at 20% VAT corresponds to £50 net and £10 VAT.

Practical tips

You must register for VAT once your taxable turnover exceeds £90,000 (2026 threshold) in a rolling 12-month period, or immediately if you expect to breach it in the next 30 days. Below the threshold registration is voluntary and often beneficial if you sell mainly to VAT-registered businesses or have significant input VAT to reclaim. Consider the Flat Rate Scheme if your turnover is under £150,000 — it simplifies bookkeeping but may not always be optimal.

Disclaimer

This tool applies the standard UK rate you enter. Reduced-rate, zero-rated, exempt and outside-scope supplies follow different rules that this calculator does not model. Cross-border supplies since Brexit have specific rules (import VAT, postponed accounting, Northern Ireland Protocol). Consult HMRC guidance or a qualified accountant for complex cases. This tool has no legal or contractual value.

Frequently asked questions

What is the difference between the net price and the gross price?⌄
The net price is the amount before VAT; the gross price includes VAT on top. To go from net to gross at the standard rate, multiply by 1.20. The common mistake is subtracting 20% from the gross price to find the net — that gives the wrong answer. £240 gross at 20% VAT corresponds to £200 net, not £192, because the correct divisor is 1.20, not a straight 20% deduction.
When do I have to register for VAT?⌄
You must register once your taxable turnover exceeds £90,000 in any rolling 12-month period, not a fixed tax year — so you need to check on a rolling basis, not just annually. Registration must happen within 30 days of crossing the threshold. Below it, registration is voluntary and can be worthwhile if you sell mainly to VAT-registered businesses or want to reclaim input VAT on setup costs.
What is the difference between zero-rated and VAT-exempt goods?⌄
Zero-rated goods (most food, books, children's clothing) are technically taxable at 0% — they count toward your taxable turnover for registration purposes, and you can still reclaim VAT on related costs. Exempt goods and services (insurance, most finance, some education) are outside the VAT system entirely — they don't count toward your turnover, and you cannot reclaim input VAT on costs used to provide them.
Can I reclaim VAT on business purchases?⌄
Yes, if you're VAT-registered and the purchase is used for your taxable business activities — you reclaim it as input VAT on your VAT return, offsetting it against the VAT you've charged customers. You need a valid VAT invoice to support each claim. Some costs are blocked from reclaim regardless, notably business entertainment and most cars bought outright.
What is the VAT Flat Rate Scheme and is it worth using?⌄
The Flat Rate Scheme lets businesses with turnover under £150,000 pay a fixed percentage of gross turnover to HMRC instead of tracking input and output VAT separately, which simplifies bookkeeping. The flat rate percentage varies by trade sector. It's often not optimal if you have significant reclaimable input VAT, such as a business buying a lot of stock or equipment — run the numbers both ways before opting in.

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