VAT Fundamentals
A timeless guide to adding and removing VAT with editable rates, written to stay useful as a formula reference rather than a fixed legal statement about any one tax regime.
Enter a net value and the VAT rate you want to apply. The default rate is only a convenience starting point and can be changed at any time.
Inputs
This topic also has a deeper guide and a printable reference pack, so you can move from the live answer into the method, assumptions, and worked examples without leaving the topic cluster.
These are the main values the calculator uses. Keep the units consistent and, where relevant, match the assumptions explained in the related guide.
Unit: GBP
Enter the VAT-exclusive amount before tax is added.
Unit: %
Use the VAT rate relevant to the transaction rather than assuming a fixed built-in rate.
Use this page whenever you need to add VAT to a price or invoice value and you want the rate to stay fully editable.
The main figure is the VAT-inclusive total. Supporting figures show the VAT amount separately so you can reconcile the gross value back to the original net amount.
If a net amount is 100 and the VAT rate is 20%, the VAT amount is 20 and the gross amount is 120.
If the rate changes, you can update the percentage directly rather than relying on a fixed built-in assumption.
VAT rules vary by product, jurisdiction, and time. This calculator applies the rate you enter only and does not determine which rate should legally apply.
No. Any default rate is just a convenience value in the form. You should edit it to match the rate relevant to your own transaction.
Remove VAT from a gross amount using an editable rate so the tool stays useful even when tax assumptions change.
Use the Discount Calculator to work out discount from values you control yourself, without baked-in policy assumptions.
Use the Markup Calculator to work out markup from values you control yourself, without baked-in policy assumptions.
Work out gross profit, profit margin, and markup from the selling price and cost you enter.