VAT calculator

Both mean no VAT is charged, but they're treated differently by businesses. Zero-rated goods (like most food) are technically taxable at 0%, so a VAT-registered business can still reclaim VAT on related costs. Exempt items (like postage stamps, insurance, and most property transactions) fall outside the VAT system entirely, and VAT on related costs generally can't be reclaimed. For a simple price calculation like this one, both work out the same — no VAT added.

Use "Remove VAT from a gross price" with the price you already have — it divides by 1 plus the VAT rate (e.g. ÷1.20 at the standard rate) rather than just taking 20% off the total, since 20% of the gross price isn't the same as the VAT actually included in it.

You must register once your VAT-taxable turnover exceeds the current registration threshold (£90,000 over a rolling 12 months, as of 2026/27) — or you can register voluntarily below that if it suits your business. This calculator doesn't check your registration status; it just works out the VAT arithmetic on a given price.

Yes — VAT is a UK-wide tax (not devolved to Scotland, Wales, or Northern Ireland the way Income Tax partly is), so the same rates and rules apply everywhere in the UK.

An optional simplified scheme for smaller businesses (VAT-taxable turnover of £150,000 or less, excluding VAT) — instead of tracking VAT on every purchase and sale separately, you pay a fixed percentage of your gross (VAT-inclusive) turnover to HMRC, with the percentage set by your trade sector. It's designed to cut admin, not necessarily to save money — depending on your sector and how much VAT-able expenditure you have, it can leave you paying more or less than standard VAT accounting. This calculator works out standard VAT only, not the Flat Rate figure.

If you're VAT-registered and selling to another VAT-registered business, yes — a full VAT invoice needs to show the VAT rate, the VAT amount, and the price excluding VAT, not just a single VAT-inclusive total. Selling directly to the public, a simpler VAT-inclusive price is usually fine, though a full invoice is still required if the customer asks for one.