How to use this calculator
- Choose what you want to do. "Add VAT" turns a price before VAT into the price your customer pays. "Take VAT out" splits a VAT-inclusive total into the price and the VAT.
- Pick the rate. Most goods and services are 20%. Some, such as home energy and children's car seats, are 5%. Some, such as most food and children's clothes, are 0%.
- Type the amount. The result updates as you type.
How it's calculated
Adding VAT: VAT = price × rate total = price × (1 + rate)
Removing VAT: price = total ÷ (1 + rate) VAT = total − price
At 20%, the VAT inside a VAT-inclusive total is one-sixth of it (total ÷ 6).
At 5%, it is one twenty-first of it (total ÷ 21).
Worked examples
£1,000 excluding VAT at 20% → VAT £200.00 → £1,200.00 including VAT
£1,200 including VAT at 20% → VAT £200.00 → £1,000.00 excluding VAT
£59.99 including VAT at 20% → VAT £10.00 → £49.99 excluding VAT
£105 including VAT at 5% → VAT £5.00 → £100.00 excluding VAT
When you must register for VAT
- When your total VAT taxable turnover for the last 12 months goes over £90,000. This is a rolling 12 months, not the tax year.
- When you expect your turnover to go over £90,000 in the next 30 days alone.
- Below £90,000 you can choose to register. Once registered, you must charge VAT on your sales and file VAT returns.
What this calculator doesn't cover
- The Flat Rate Scheme, where small businesses pay a fixed percentage of their turnover instead of the difference between VAT charged and paid.
- Exempt sales (such as most insurance and some education and health services), which aren't the same as zero-rated sales.
- Sales to customers outside the UK, and the reverse charge for building work and some services.
- Mixed invoices where different items have different rates. Work those out one line at a time.
Frequently asked questions
How do I work out the VAT from a total that includes VAT?
At 20%, divide the total by 6. For example, a £240 invoice includes £40 of VAT, and the price before VAT is £200. Don't take 20% of the total: 20% of £240 is £48, which is too much.
Do freelancers have to charge VAT?
Only once you're VAT-registered. If your turnover is under £90,000 and you haven't chosen to register, don't add VAT to your invoices. Our self-employed tax calculator covers Income Tax and National Insurance, which are separate from VAT.
Is the £90,000 based on profit or sales?
Sales. It's your VAT taxable turnover: the total of everything you sell that isn't exempt from VAT, before taking off any costs.
Sources: GOV.UK: VAT rates; GOV.UK: when to register for VAT. Checked 30 September 2026.