SELLERSTACK UK VAT TOOL · UPDATED FOR 2026
UK VAT
Calculator
Add VAT to a net price, remove VAT from an inclusive price and see the VAT amount instantly using standard, reduced, zero or custom rates.
UK VAT Calculator
Add or remove VAT and see the net price, VAT amount and VAT-inclusive total.
Enter the price before VAT is added.
Select the VAT rate that applies to the transaction.
Enter a price and select the applicable VAT rate to calculate the VAT-inclusive total.
At the standard 20% rate, a £100 net price contains £20 VAT and becomes £120 including VAT.
What Does the UK VAT Calculator Do?
The SellerStack UK VAT Calculator helps you add VAT to a VAT-exclusive price, remove VAT from a VAT-inclusive price and identify the VAT amount contained within the total.
Choose Add VAT or Remove VAT, enter the amount and select the applicable VAT rate.
The calculator supports the main UK VAT rates of 20%, 5% and 0%, together with a custom-rate option for other calculations or pricing scenarios.
Reviewed: October 2026
VAT rates, registration thresholds, product classifications, schemes and HMRC rules can change.
SellerStack periodically reviews the figures and guidance used on this page, but you should verify the VAT treatment of important transactions using current HMRC guidance.
How to Use the UK VAT Calculator
1. Choose Add VAT or Remove VAT
Select Add VAT when your starting amount excludes VAT. Select Remove VAT when VAT is already included in the amount.
2. Enter the Price
Enter the amount from your supplier invoice, purchase, selling price or other VAT calculation.
3. Select the VAT Rate
Choose 20%, 5%, 0% or enter a custom percentage where an appropriate different rate needs to be modelled.
4. Calculate VAT
SellerStack calculates the VAT-exclusive price, VAT amount and VAT-inclusive total.
5. Check the Result Against Your Documents
Where the calculation relates to an actual transaction, compare the result with the supplier invoice, receipt or other VAT documentation.
Current UK VAT Rates
The rate that applies depends on the goods or services being supplied. You should not assume every sale uses the standard rate.
20%
The standard VAT rate applies to most VAT-taxable goods and services in the UK.
5%
Certain qualifying goods and services are charged at the reduced VAT rate.
0%
Some goods and services are VAT-taxable but charged at a VAT rate of zero.
Not a 0% Rate
VAT-exempt supplies are treated differently from zero-rated taxable supplies.
Zero-Rated and VAT-Exempt Are Not the Same
A zero-rated supply is still a taxable supply, but VAT is charged at 0%.
An exempt supply is not VAT-taxable in the same way and is generally excluded from VAT-taxable turnover for registration purposes.
This distinction can also affect whether VAT relating to business purchases can be reclaimed.
How to Add VAT to a Price
If the amount you have been given excludes VAT, calculate the VAT and add it to the net amount.
Add VAT Formula
VAT Amount = Net Price × VAT Rate
VAT-Inclusive Price = Net Price + VAT Amount
A supplier quotes a net price of £100.
VAT:
£100 × 20% = £20
Total including VAT:
£100 + £20 = £120
How to Remove VAT From a VAT-Inclusive Price
Removing VAT is where one of the most common calculation errors occurs.
If £120 already includes 20% VAT, you should not simply subtract 20% from £120.
Remove VAT Formula
Net Price = VAT-Inclusive Price ÷ (1 + VAT Rate)
VAT-inclusive price: £120
Net price:
£120 ÷ 1.20 = £100
VAT component:
£120 − £100 = £20
Do Not Subtract 20% From a VAT-Inclusive Price
Subtracting 20% from £120 gives £96, which is not the original VAT-exclusive price.
VAT was calculated as 20% of the original £100 net amount—not 20% of the final £120 total.
Finding the VAT Component at 20%
At the standard 20% VAT rate, VAT represents one-sixth of a VAT-inclusive total.
VAT Amount = VAT-Inclusive Price ÷ 6
VAT-inclusive amount: £300
VAT component:
£300 ÷ 6 = £50
Net amount: £250
Removing 5% VAT
The same principle applies when working with the reduced 5% rate.
VAT-inclusive amount: £105
Net amount:
£105 ÷ 1.05 = £100
VAT amount: £5
VAT-Inclusive vs VAT-Exclusive Prices
Before using any VAT calculator, establish whether VAT is already contained within the price.
VAT Is Added Afterwards
A quote of £100 + VAT means £100 is the net price and VAT must still be added.
At 20%, the amount payable becomes £120.
VAT Is Already Inside the Price
A price of £120 including VAT already contains the VAT amount.
At 20%, the underlying net price is £100.
When comparing supplier prices, check whether each quote includes VAT before deciding which supplier is cheaper.
Comparing one VAT-inclusive quote with another VAT-exclusive quote can make the more expensive option appear cheaper.
Why VAT Matters When Buying Resale Stock
For resellers, VAT can affect both the apparent purchase price and the real economics of an item.
You may encounter VAT on:
- Wholesale inventory
- Retail clearance purchases
- Marketplace selling fees
- Advertising
- Software subscriptions
- Packaging materials
- Equipment
- Professional services
Whether VAT represents a final business cost can depend on whether you are VAT registered, whether the VAT is recoverable and which VAT accounting rules or schemes apply.
Do not automatically remove VAT from a business cost simply because an invoice contains VAT.
UK VAT Registration Threshold
VAT registration is based on VAT-taxable turnover rather than profit.
A business generally needs to register for VAT when either:
- Total VAT-taxable turnover for the previous rolling 12 months goes over £90,000
- It expects VAT-taxable turnover to go over £90,000 in the next 30 days
A business can cross the VAT registration threshold even where its actual profit is much lower than £90,000.
Stock costs, marketplace fees, postage and other normal business expenses do not simply reduce turnover for the purpose of this threshold.
What Is VAT-Taxable Turnover?
VAT-taxable turnover broadly includes the value of supplies that are not VAT exempt.
This includes:
- Standard-rated supplies
- Reduced-rated supplies
- Zero-rated supplies
Exempt supplies are generally excluded from VAT-taxable turnover.
Check Your VAT and HMRC Threshold Position
Compare your figures with the £1,000 Trading Allowance, digital-platform reporting rules, VAT registration threshold and Making Tax Digital thresholds.
Can You Register for VAT Below £90,000?
Yes. A business can potentially register voluntarily even where its taxable turnover is below the compulsory registration threshold.
Whether voluntary registration makes commercial sense depends on the business, its customers, purchases, VAT recovery position and administrative requirements.
Do Not Judge VAT Registration From One Number Alone
A business selling mainly to VAT-registered businesses can face a different pricing situation from one selling primarily to consumers.
Consider pricing, input VAT recovery, customer type, administration and any relevant VAT scheme before voluntarily registering.
VAT for VAT-Registered Online Sellers
Once registered, VAT becomes part of the accounting process rather than simply another percentage added to a calculator.
VAT on Sales
This is VAT accounted for on taxable sales where VAT is due, subject to the applicable VAT rules and any scheme being used.
VAT on Business Purchases
Eligible VAT incurred on business purchases may be reclaimable where the VAT recovery rules are satisfied and appropriate evidence is held.
Being VAT registered does not mean that every amount labelled “VAT” can automatically be reclaimed.
The purchase must satisfy the relevant VAT recovery rules, and appropriate VAT records or invoices may be required.
VAT Margin Scheme for Second-Hand Resellers
This is particularly important for SellerStack users who buy and resell second-hand goods.
Eligible VAT-registered businesses may be able to use a VAT Margin Scheme for certain:
- Second-hand goods
- Works of art
- Antiques
- Collectors’ items
Under an eligible Margin Scheme transaction, VAT is calculated on the difference between the purchase price and selling price rather than simply charging VAT on the full selling price.
At the standard rate, HMRC describes the VAT due under the scheme as one-sixth of the eligible margin.
Suppose an eligible second-hand item is:
- Bought for £300
- Sold for £420
- Margin: £120
Under the standard-rate Margin Scheme calculation:
£120 ÷ 6 = £20 VAT
This VAT Calculator Does Not Calculate Margin Scheme VAT
The SellerStack UK VAT Calculator performs normal add-VAT and remove-VAT calculations against an amount.
VAT Margin Schemes have separate eligibility, purchase, record-keeping and invoicing requirements.
Do not use the ordinary Add VAT function as a substitute for a proper Margin Scheme calculation.
Worked Example: Buying Stock From a Wholesaler
A wholesaler quotes:
| Invoice Element | Amount |
|---|---|
| Stock price excluding VAT | £200.00 |
| VAT at 20% | £40.00 |
| Total payable | £240.00 |
Adding VAT
Enter £200, select Add VAT and choose 20%.
SellerStack returns:
- Net amount: £200
- VAT: £40
- VAT-inclusive total: £240
Checking a VAT-Inclusive Invoice
If you only know that the total is £240 including VAT, choose Remove VAT.
The calculator identifies the same £200 net amount and £40 VAT component.
VAT and Reseller Profit Calculations
VAT should be handled consistently when you analyse resale profit.
A frequent mistake is mixing VAT-inclusive and VAT-exclusive figures in the same profit calculation.
Suppose two suppliers advertise the same stock:
| Supplier | Advertised Price | Actual Total at 20% |
|---|---|---|
| Supplier A | £100 including VAT | £100 |
| Supplier B | £90 + VAT | £108 |
Looking only at the headline prices could make Supplier B appear cheaper even though its VAT-inclusive amount is higher.
Calculate Your Reselling Profit
Once you understand the relevant cost figures, calculate profit, margin and ROI after stock, selling, postage and other business costs.
Common VAT Mistakes UK Sellers Make
1. Confusing VAT-Inclusive and VAT-Exclusive Prices
Always establish whether VAT has already been included before using a price in a buying or profit calculation.
2. Removing 20% by Subtracting 20%
To remove standard-rate VAT from a VAT-inclusive amount, divide the total by 1.20.
3. Assuming Every Product Uses 20%
Some supplies are reduced-rated, zero-rated or exempt. Classification matters.
4. Treating Zero-Rated as Exempt
Zero-rated supplies are VAT-taxable at 0%; exempt supplies have different VAT treatment.
5. Using Profit for the VAT Registration Threshold
Compulsory VAT registration is based on VAT-taxable turnover, not commercial profit.
6. Checking VAT Turnover Only Once a Year
The historical registration test uses a rolling 12-month period, so a growing business should monitor turnover regularly.
7. Assuming Every Business Expense Allows VAT Recovery
VAT recovery depends on the nature and use of the purchase, the relevant VAT rules and suitable supporting records.
8. Using the Normal VAT Formula for Margin Scheme Sales
Eligible second-hand Margin Scheme transactions use different VAT calculations and record-keeping rules.
9. Ignoring VAT on Marketplace or Business Fees
Check invoices and statements rather than assuming every platform charge is displayed on the same VAT basis.
10. Using a Custom Rate Without Checking Why
The custom-rate option is useful for calculations and modelling, but it does not establish which VAT rate legally applies to a transaction.
SellerStack VAT Checklist
- Does the price include VAT already?
- Am I using the correct VAT rate?
- Have I checked the supplier invoice?
- Am I comparing supplier prices on the same VAT basis?
- Have I separated the net amount from the VAT amount?
- Do I understand whether the supply is zero-rated or exempt?
- Am I monitoring VAT-taxable turnover rather than profit?
- Have I considered the rolling 12-month registration test?
- Have I considered the separate next-30-day test?
- If VAT registered, do I have appropriate VAT records?
- If selling second-hand goods, have I checked Margin Scheme rules?
- Am I using consistent VAT figures in my profit calculations?
Source Smarter. Protect Your Profit.
Download the free UK Reseller Profit Toolkit for practical worksheets, sourcing checks, pricing guidance and links to SellerStack calculators.
Get the Free Profit Toolkit →UK VAT Calculator FAQs
What is the standard UK VAT rate?
The standard UK VAT rate is currently 20%. It applies to most VAT-taxable goods and services unless another VAT treatment applies.
What is the reduced UK VAT rate?
The current reduced VAT rate is 5%. It applies only to qualifying goods, services or circumstances defined by VAT rules.
What does zero-rated VAT mean?
A zero-rated supply is taxable for VAT purposes but VAT is charged at 0%. This is different from a VAT-exempt supply.
How do I add 20% VAT?
Multiply the VAT-exclusive amount by 1.20. For example, £100 × 1.20 gives £120 including VAT.
How do I remove 20% VAT?
Divide the VAT-inclusive amount by 1.20. For example, £120 ÷ 1.20 gives a £100 net price and £20 VAT.
Why can’t I just subtract 20% to remove VAT?
Because the 20% VAT was calculated on the original net amount, not on the VAT-inclusive total. Removing 20% from the gross amount therefore produces the wrong net figure.
How much VAT is included in a standard-rated price?
At the standard 20% rate, the VAT component is one-sixth of the VAT-inclusive amount.
What is the UK VAT registration threshold?
The current compulsory VAT registration threshold is more than £90,000 of VAT-taxable turnover, subject to HMRC’s rolling 12-month and next-30-day tests and other registration rules.
Is the £90,000 VAT threshold based on profit?
No. The threshold concerns VAT-taxable turnover rather than profit after stock, fees and other business costs.
Can I register for VAT below £90,000?
A business may be able to register voluntarily below the compulsory registration threshold. Whether doing so is commercially appropriate depends on its circumstances.
Can VAT-registered businesses reclaim VAT on purchases?
Eligible business input VAT may be reclaimable where the VAT recovery rules are met and suitable VAT evidence is held. Restrictions and special rules can apply.
What is the VAT Margin Scheme?
Eligible VAT Margin Schemes allow VAT on certain second-hand goods, works of art, antiques and collectors’ items to be calculated by reference to the eligible profit margin rather than the full selling price.
Does this calculator calculate second-hand Margin Scheme VAT?
No. The SellerStack VAT Calculator performs standard add-VAT and remove-VAT calculations. Margin Scheme VAT has separate eligibility and calculation rules.
Can I enter a custom VAT rate?
Yes. You can enter a custom percentage for calculations or scenarios where another rate is required. The calculator does not determine whether that rate legally applies.
Is the SellerStack UK VAT Calculator free?
Yes. The VAT Calculator and SellerStack’s other UK reseller calculators are free to use.
Separate the Net Price, VAT and Final Cost Before Making a Decision
VAT mistakes often start with a simple misunderstanding about whether a price already includes VAT.
Check the VAT basis first, apply the correct rate and keep VAT-inclusive and VAT-exclusive figures consistent when comparing suppliers, calculating costs or setting selling prices.
For VAT-registered resellers—particularly those dealing in second-hand goods—also check whether normal VAT accounting or a specialist scheme applies before treating the calculator result as the VAT due to HMRC.
Use the Calculator as a VAT Planning Tool
The SellerStack UK VAT Calculator performs mathematical add-VAT and remove-VAT calculations using the rate selected by the user.
It does not determine which VAT rate applies to a product or service, whether a business must register for VAT, whether input VAT can be reclaimed, whether a transaction qualifies for a VAT Margin Scheme or how much VAT ultimately needs to be reported to HMRC.
VAT treatment can depend on the goods or services supplied, customer and supplier circumstances, place of supply, business structure, registration status and any VAT accounting scheme being used.
SellerStack is independent and is not affiliated with or endorsed by HM Revenue & Customs.
Verify significant VAT decisions using current GOV.UK guidance or seek advice from a suitably qualified tax professional where necessary.
Keep VAT, Tax Thresholds and Business Numbers Organised
Explore SellerStack’s free UK tools and practical guidance for VAT, HMRC thresholds, record-keeping, profit and business decisions.
Explore Tax, Records & Business →