Sheetsmith

VAT Calculator

Add VAT to a net amount, or work backwards from a gross amount to find the VAT inside it. Standard, reduced and zero rates, or type your own.

Add or remove VAT20% · 5% · 0% · customReverse VATNothing uploaded

Calculator

Net£100.00
VAT£20.00
Gross£120.00

Quote & Invoice Excel template

Invoicing with VAT every week?

This works one amount at a time. The Quote & Invoice template applies the right VAT rate per client and per line automatically — standard, reduced, zero-rated and exempt on the same invoice — with a register and dashboard.

  • Per-client VAT treatment and payment terms
  • Per-item VAT rates (zero-rated goods, exempt services)
  • Quote and invoice sheets that fill from dropdowns
  • One-page A4 print, no macros
£9 Get the invoice template

Instant download · Excel, Google Sheets, LibreOffice · No macros

How VAT is added and removed

Adding VAT is the easy direction: multiply the net amount by the rate. At the 20% standard rate, £100 net becomes £120 gross, and the VAT is £20. Removing VAT — working out how much VAT is inside a price you already have — is where people go wrong, because you cannot simply take 20% off. £120 gross is not £96 net; the VAT inside it is £120 ÷ 1.2 = £100 net, so £20 VAT. The general formula is net = gross ÷ (1 + rate), and the calculator does exactly that when you switch the amount to "gross".

UK VAT rates

The standard rate is 20% and applies to most goods and services. The reduced rate of 5% covers a short list including domestic fuel and power, children's car seats, and some energy-saving installations. The zero rate applies to most food, books and newspapers, children's clothing and public transport — zero-rated items are still VATable sales (you record them and can reclaim input VAT), which is different from exempt items such as insurance, most financial services and postage stamps, where no VAT is charged and none can be reclaimed. If you are unsure which applies, HMRC's VAT rates list is the authority; this page is a calculator, not advice.

When you need to charge VAT

A UK business must register for VAT once its taxable turnover passes the threshold (£90,000 in a rolling twelve months), and may register voluntarily below it. Once registered you charge VAT on your sales, reclaim it on most purchases, and file returns — usually quarterly. Prices shown to consumers must include VAT; prices quoted between businesses are often shown net with VAT added on the invoice, which is why "add VAT" is the most common use of this calculator.

Rounding

Results are rounded to the penny, which is what HMRC accepts on invoices. If you are adding VAT to many lines, calculate the VAT per line and sum it, rather than applying the rate to the rounded total; the difference is rarely more than a penny, but accounting software does it per line and your invoice should match.

Questions

How do I remove VAT from a price?

Divide the gross price by 1.2 for the 20% rate (1.05 for 5%). The result is the net price; the difference is the VAT. Select "Gross — remove VAT" above and the calculator does it.

What is the VAT on £100?

At 20%, £20 — making £120 gross. At 5%, £5. If £100 is the gross price, the VAT inside it at 20% is £16.67.

Is this calculator only for the UK?

The default rates are UK, but choose "Custom" and type any percentage — 23% for Ireland, 19% for Germany, 21% for the Netherlands — and the arithmetic is identical.

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