UK VAT Calculator

Please note: This UK VAT calculator is to be used with no liability or responsibility taken by its provider.

To calculate VAT using a calculator, please visit how to calculate VAT.

It is very important VAT is calculated accurately as it can lead to errors in VAT accounting  and to a loss of money or unintentional extra money. Also incorrect VAT returns made to HMRC can result in penalties, fines or even prosecution.

This VAT calculator is designed to be 100% accurate, however, the user inputs the amounts to be calculated, so it is the user’s responsibility to ensure the amounts being used are correct.

The current standard rate of VAT in the UK is 20% for most goods and services. This VAT calculator selects the 20% rate by default, so please select a different rate if you need to.

Introduction to VAT

Value Added Tax (VAT) is a tax that’s charged on most goods and services that VAT-registered businesses provide in the UK. It’s also charged on goods and some services that are imported from countries outside the European Union (EU), and brought into the UK or EU.

VAT is charged when a VAT-registered business sells goods and services to UK and EU based businesses and individuals. VAT is not charged on sales to businesses and individuals based outside the EU. This is why non-EU visitors to the UK can claim VAT refunds on their UK purchases when leaving the country. Some department stores such as Selfridges in London have dedicated desks to help foreign customers with VAT refunds.

When VAT-registered businesses buy goods and services they generally pay or reclaim VAT based on the difference between the VAT they’ve paid on purchases (input tax) and the VAT they’ve received on sales (output tax). VAT payments are made to HMRC and HMRC also pay businesses VAT reclaims. This is administered by VAT returns VAT registered businesses must submit on a periodic basis.

General members of the public cannot reclaim VAT on purchases.

This VAT calculator is useful for calculating VAT amounts for adding VAT to a net amount (VAT exclusive amount) and taking VAT away from a gross amount (VAT inclusive amount). In both cases, the VAT calculator shows the VAT amounts.