Free calculator
VAT calculator
Enter a price, pick the VAT rate and whether the price already includes VAT. You get the net amount, the VAT and the total your invoice will show.
VAT
£200.00
- Net (excluding VAT)
- £1,000.00
- VAT at 20%
- £200.00
- Total including VAT
- £1,200.00
How VAT is worked out
VAT is a percentage of the net price, the price before VAT. For £1,000 at 20%, the VAT is £200 and the total £1,200. At the reduced 5% rate the VAT on £1,000 is £50.
To take VAT out of a price that includes it, divide by 1.2 at 20% (or 1.05 at 5%): £1,200 including VAT is £1,000 net and £200 VAT. Don’t just take 20% off the gross price; that gives £240, which is wrong.
Which rate applies
- 20% standard rate: most goods and services.
- 5% reduced rate: for example domestic energy and some energy-saving materials.
- 0% zero rate: for example most food, books and children’s clothes. Zero-rated sales are still VAT sales, at 0%.
- Exempt and outside the scope: no VAT at all, and they are not the same as zero-rated.
On your invoice
Only a VAT-registered business can charge VAT. A VAT invoice shows your VAT number, the VAT rate and net amount for each line, and the total VAT in pounds. The button below opens our free VAT invoice generator with the numbers filled in.
Last updated 2026-10-01. This calculator is a guide, not tax advice.
Frequently asked questions
How do I remove VAT from a price?
Divide the price including VAT by 1.2 (at 20%) to get the net price; the difference is the VAT. For 5%, divide by 1.05.
Can I charge VAT if I’m not VAT registered?
No. Only a VAT-registered business may charge VAT or show a VAT number. Below the registration threshold your invoices simply show no VAT.
How is VAT rounded on an invoice?
HMRC lets you work VAT out per line or on the invoice total, rounding to the nearest penny, as long as you’re consistent. Invoice Native works it out per VAT rate and rounds to the nearest penny.