Use our VAT calculator to calculate the amount of VAT that needs to be deducted from your invoices. You can adjust the rate of VAT for various circumstances and base the calculation on whether your total is VAT-inclusive or VAT-exclusive. This helps distinguish them from gross and net calculations.
Note: These calculations are only for illustrative purposes and are not a substitute for professional advice.
How To Use the VAT Calculator
Firstly, enter the total amount in the VAT calculator you wish to calculate value added tax on. This can be net or gross depending on your calculation.
Once you have entered your total amount, you will need to choose which rate of VAT you will be using.
The current standard VAT rate in the UK is 20%.
There is also a reduced rate of VAT which is 5%. This is used on some services and goods such as domestic energy or some safety equipment.
A third rate of VAT is at 0%. This applies to certain products such as children’s clothing.
Lastly, you will need to input whether your calculation is based on the VAT being exclusive (select if adding on) or inclusive (select if removing).