UK VAT Calculator
Whether you’re buying stock, checking supplier invoices or setting your selling prices, understanding VAT is an important part of running a profitable reselling business. Knowing whether a price includes VAT—and how much VAT you’re actually paying—can help you avoid costly mistakes and make more informed decisions.
Our free UK VAT Calculator makes it quick and easy to add VAT to a net price or remove VAT from a VAT-inclusive amount. Simply choose your calculation type, enter the price and select the appropriate VAT rate to instantly see the net price, VAT amount and total price.
Designed for UK resellers, eCommerce sellers, small business owners and sole traders, this calculator helps you calculate VAT with confidence, whether you’re working with the standard 20% rate, a reduced rate or a custom percentage.
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.
💷 How to Use the UK VAT Calculator
Using the SellerStack VAT Calculator is straightforward. Simply choose whether you want to add VAT to a price or remove VAT from a VAT-inclusive amount.
- Select Add VAT or Remove VAT.
- Enter your price.
- Choose the correct VAT rate (20%, 5%, 0% or a custom rate).
- Click Calculate VAT.
- Review the net price, VAT amount and total price.
Whether you’re buying stock, pricing products or checking supplier invoices, this calculator helps you calculate VAT quickly and accurately.
Why Calculating VAT Correctly Matters
VAT can have a significant impact on your costs and pricing strategy. Even small mistakes can reduce your profit margins or lead to incorrect pricing.
Understanding how VAT affects each transaction helps you:
- Price products accurately.
- Understand the true cost of buying inventory.
- Check supplier invoices.
- Calculate selling prices with confidence.
- Avoid accidental undercharging or overcharging.
If you’re VAT registered, calculating VAT correctly is also important for accurate bookkeeping and tax reporting.
1. Confusing VAT-inclusive and VAT-exclusive prices
Always check whether the price you’re looking at already includes VAT. A supplier quote of £120 isn’t the same as £120 + VAT.
2. Adding 20% instead of removing it
Many beginners assume removing VAT from £120 simply means subtracting £24.
That’s incorrect.
To remove 20% VAT correctly:
£120 ÷ 1.20 = £100
3. Forgetting that not every item uses 20% VAT
Although 20% is the standard UK VAT rate, some products qualify for reduced or zero rates.
Always check which VAT rate applies before pricing products.
4. Ignoring VAT when calculating profit
If you’re VAT registered, VAT isn’t your profit.
Always calculate your true buying cost before working out margins.
5. Assuming marketplace fees include VAT
Some selling fees include VAT while others are shown before VAT.
Always check your invoices so your profit calculations remain accurate.
Worked Example
Imagine you’re purchasing stock from a wholesaler.
| Item | Value |
|---|---|
| Net Cost | £200.00 |
| VAT (20%) | £40.00 |
| Total Invoice | £240.00 |
Using the VAT Calculator:
- Enter £200
- Choose Add VAT
- Select 20%
Result:
- Net Price: £200.00
- VAT: £40.00
- Total Price: £240.00
Now imagine you receive an invoice for £240 including VAT.
Choose Remove VAT, enter £240, and you’ll immediately see:
- Net Price: £200.00
- VAT: £40.00
✅ SellerStack VAT Checklist
Before buying or selling, ask yourself:
- □ Does this price already include VAT?
- □ Am I using the correct VAT rate?
- □ Have I checked the supplier invoice?
- □ Have I included VAT in my profit calculations?
- □ Does my selling price still leave enough profit after VAT?
- □ If I’m VAT registered, have I separated VAT from business income?
Decision Rule: Never assume a price includes or excludes VAT—always check first. A few seconds of verification can prevent costly pricing mistakes.
Recommended Free SellerStack Resource
Make Better Buying Decisions
The difference between profitable resellers and struggling sellers isn’t luck—it’s having a repeatable system. Download our FREE UK Reseller Profit Toolkit and start making more confident sourcing decisions today.
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- Shipping cost guide
- Links to every SellerStack calculator
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SellerStack Verdict
Buy Smarter. Sell Smarter. Grow Smarter.
Understanding VAT isn’t just about tax—it’s about making smarter business decisions.
Whether you’re sourcing inventory, pricing products or checking supplier invoices, knowing how to add and remove VAT accurately helps you avoid costly mistakes and gives you a clearer picture of your true costs and profits.
Use this calculator whenever you’re evaluating a purchase or setting prices, and combine it with the SellerStack Profit and ROI Calculators to make every sourcing decision with greater confidence.