Calculating VAT isn’t overly complex. But if you’re new to being VAT registered and you just want to sanity check the amount you’re adding for VAT on your invoicing, this calculator will do it for you.
There are different VAT rates in the UK. Be sure to know which one applies to you:
- Standard Rate (20%) – applies to most products and services
- Reduced Rate (5%) – applies to select products including children’s car seats
- Zero Rate (0%) – includes things like some foods and children’s clothing
The VAT calculator below will let you put in your price before VAT, choose your rate and provide you with information about how much VAT to add.
VAT Calculator
How to Calculate VAT
If you want to know how to calculate this yourself (without a calculator) here’s how it works:
- For standard rate (20%), simply take your price and multiply by 1.2
- For reduced rate (5%) take your price and multiply by 1.05
So, if you’re issuing an invoice for a product or service that is standard rated for VAT and your price is £450, the calculation is simply:
- 450 x 1.2 = 540
So your total price is £540.
Then your total price minus your original price gives you the vat amount specifically.
So, for your £450 invoice:
- £450 x 1.2 = £540
- £540 – £450 = £90
- Therefore your VAT is £90 to make your total invoice £540
Which VAT Rate Applies to Which Products?
Most products are at the standard rate of VAT in the UK – 20%.
Some select products are zero rated and some are at a reduced rate of 5%. The specifics of which rates apply to which products can be found here.
As ever, make sure you have expert help when it comes to keeping VAT records and making your VAT returns if you’re unsure at all. Your accountant will be able to advise you.
