luckpandaHow to use the VAT calculator
- Choose Add VAT for a net price, or Remove VAT for a gross price.
- Enter the amount in pounds.
- Pick 20%, 5%, 0% or enter a custom rate.
- Read the net amount, the VAT and the gross amount.
VAT formulas with worked examples
Adding VAT: VAT = net × rate ÷ 100; gross = net + VAT. Removing VAT: net = gross × 100 ÷ (100 + rate); VAT = gross − net.
A common mistake is taking 20% off a gross price. 20% of £1,200 is £240, but the VAT inside £1,200 is only £200, one sixth of it.
| Net | Rate | VAT | Gross |
|---|---|---|---|
| £100.00 | 20% | £20.00 | £120.00 |
| £1,000.00 | 20% | £200.00 | £1,200.00 |
| £250.00 | 5% | £12.50 | £262.50 |
| £480.00 | 0% | £0.00 | £480.00 |
VAT rates in the UK and nearby countries
For invoices to EU customers the place of supply rules decide whose VAT applies; business-to-business services are often reverse-charged. Use the custom rate for another country's rate. Rates as of October 2026; check the tax authority before relying on them.
| Country | Standard rate | Main reduced rates |
|---|---|---|
| United Kingdom | 20% | 5%, 0% |
| Germany | 19% | 7% |
| France | 20% | 10%, 5.5% |
| Netherlands | 21% | 9% |
| Ireland | 23% | 13.5%, 9% |
| Spain | 21% | 10%, 4% |
| Italy | 22% | 10%, 5%, 4% |
What a VAT invoice must show
- Your VAT registration number
- A unique invoice number and the invoice date
- The time of supply (tax point) if different from the invoice date
- Your name and address and the customer's
- A description of each item, the quantity, the unit price and the VAT rate
- The total net amount, the total VAT and the gross total, in pounds