Use the first box to work out the VAT on an invoice or a price list, at 20%, 5% or 0%. Use the second to see how close your business is to the £90,000 registration threshold, and what happens if you pass it.
Free calculator. Figures update as you type.
Marketplace and own-website sales both count towards the threshold. VAT on EU sales, imports and digital products has its own rules, which we cover in the guides below.
You must register for VAT when your taxable turnover over any rolling 12 months goes above £90,000, or when you expect to pass £90,000 in the next 30 days alone. The test runs on any 12-month period, not the tax year, so check it every month.
Multiply the net price by 1.20. For example £1,000 plus 20% VAT is £1,200, of which £200 is VAT. At the 5% reduced rate you multiply by 1.05, and at the zero rate the price does not change.
Divide the gross price by 1.20 at the standard rate. £1,200 including VAT is £1,000 net with £200 of VAT. Taking 20% off £1,200 gives £960, which is wrong, because VAT is charged on the net price and not the gross.
There are three: the standard rate of 20% on most goods and services, a reduced rate of 5% on things like domestic fuel and power, and a zero rate on things like most food, books and children's clothes. Some supplies are exempt, which is different from zero-rated, and exempt sales do not count towards the registration threshold.
Yes. Sales you make as a UK-established seller through a marketplace or your own store count towards the £90,000 taxable turnover test, along with every other taxable sale you make. Add them up across all channels before you check.
You can apply to deregister if you expect your taxable turnover over the next 12 months to be £88,000 or less. Check the effect first: you stop reclaiming VAT on your costs, and you may have to account for VAT on stock and assets you still hold.
We register businesses for VAT, choose the right scheme and file the returns, including for online sellers.
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