Add VAT Calculator
When you are VAT-registered, every sale you make to a customer typically requires you to charge VAT on top of your net (pre-tax) price. The VAT you collect is not income — it is held on behalf of the tax authority and submitted on your periodic VAT return. Getting this right on every invoice matters both for legal compliance and for ensuring customers understand exactly what they are paying.
This calculator takes the net amount and your VAT rate, and instantly shows the VAT charged and the gross total — the final figure that appears on an invoice or receipt. Select from preset rates for the UK, major EU member states, Australia, Canada, and other countries, or type in any custom rate. The calculation updates immediately; there is no need to reach for a spreadsheet or work through the arithmetic manually.
Understanding the net-to-gross calculation is also important when quoting customers. Business-to-business (B2B) quotes are typically given in net terms, with VAT added separately. Consumer-facing (B2C) prices are usually shown inclusive of VAT. Knowing which applies to your context — and being able to convert between the two instantly — avoids invoicing errors and ensures customers are never surprised by the final amount they owe.
Formula
VAT Amount = Net Amount × (VAT Rate ÷ 100) Gross Amount = Net Amount + VAT Amount
Take the net amount (before tax) and multiply it by the VAT rate as a decimal. Add the result to the original net amount to get the final price including VAT.
Worked Examples
Frequently Asked Questions
When should I add VAT to a price?▾
If you are a VAT-registered business selling goods or services, you must add VAT to your net price before invoicing the customer. The VAT amount must be shown separately on the invoice. You should only charge VAT if your business is registered — adding VAT without being registered is a serious compliance issue.
What is the difference between net and gross price?▾
The net price (also called ex-VAT or pre-tax price) is the price before VAT is added. The gross price (also called VAT-inclusive or total price) includes the VAT. For example, a net price of £100 at 20% VAT gives a gross price of £120 — the £20 VAT appears as a separate line on the invoice. Both figures must be clearly shown on a valid VAT invoice.
Can I add different VAT rates to different items on one invoice?▾
Yes. An invoice can include items at different VAT rates — for example, standard-rated services at 20% and zero-rated goods at 0%. Each rate must be listed separately, showing the net amount and VAT for each rate band. Use this calculator for each line item or rate group, then combine the totals.
What VAT rate should I use?▾
The correct rate depends on the type of goods or services and the country of supply. In the UK, the standard rate is 20% for most goods and services. A reduced 5% rate applies to items like domestic energy and certain renovation works. Zero-rated items include most food, books, and children's clothing. Always check HMRC guidance for your specific product if you are unsure.
Do I need to be VAT-registered to charge VAT?▾
You should only charge VAT to customers if your business is VAT-registered. In the UK, registration is compulsory once your taxable turnover exceeds the registration threshold (£90,000 as of 2024). You can also register voluntarily below that threshold, which lets you reclaim VAT on business purchases. Charging VAT when not registered is a criminal offence.
What if my price already includes VAT?▾
If the price already includes VAT, you need to remove (extract) VAT instead. Use the Remove VAT calculator or the main VAT Calculator in remove mode to find the net amount and VAT component within a gross price.
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All calculations are for informational purposes only. They should not replace professional financial, tax, or legal advice. Always consult a qualified professional for decisions affecting your finances or business.