VAT Invoice Calculator

Updated August 2026 Last reviewed 10 August 2026 VAT GOV.UK what a VAT invoice must include

Enter up to three line items with their quantity and unit price, choose a VAT rate, and the calculator works out each line, the subtotal and the VAT-inclusive total.

A VAT invoice must show the net, the VAT rate and the VAT amount — this gives you all three.

Your details

Results

Gross total (inc. VAT)
£420.00
What the customer pays
Net subtotal (ex. VAT)
£350.00
VAT amount
£70.00
At 20%
Line 1
£200.00
Line 2
£150.00

How the calculation works

We believe numbers should be transparent. Here is the formula behind this calculator.

Line total = quantity × unit price · Subtotal = sum of lines · VAT = subtotal × rate · Gross = subtotal + VAT

Worked example

Worked example: 2 × £100 + 3 × £50 at 20% VAT

Line 1: 2 × £100 = £200. Line 2: 3 × £50 = £150. Subtotal: £350.
VAT: £350 × 20% = £70.
Gross total: £350 + £70 = £420 — the amount the customer pays.

Important assumptions

  • Unit prices are entered net of VAT; VAT is added on the subtotal.
  • All lines use the same VAT rate — mixed-rate invoices need separate sections.
  • Quantity is rounded up in the line totals; a zero quantity line contributes nothing.

Rates & official sources

Every calculation is based on the official rates and rules published by GOV.UK and HMRC.

Frequently asked questions

What must a VAT invoice show?

A VAT invoice must show the seller's name and address, your name and address, a unique invoice number, the date, the description, the net amount, the VAT rate and the VAT charged.

Do I charge VAT on every line?

Only if your supply is taxable. Some goods are zero-rated or exempt, and some customers (like overseas businesses) may not be charged UK VAT. This calculator uses one rate across the invoice.

Can I round the VAT amount?

Yes — HMRC allows rounding to the nearest penny. This calculator keeps exact figures; your accounting software will round the total for the invoice.

Related calculators

Related guides

New to the topic? Read a plain-English guide on vat, with worked examples and tips.

These calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.