Turn this into a VAT invoice in GlideQuote — free
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How it is calculated
Adding VAT: VAT = net × rate ÷ 100 · total = net + VAT
Removing VAT from a price that already includes it: net = gross ÷ (1 + rate ÷ 100) · VAT = gross − net
Worked example at 20%: a job priced at £250 before VAT → VAT £50.00 → total £300.00. Going the other way, £300 including VAT ÷ 1.2 = £250.00 net, so the VAT inside it is £50.00.
Which rate?
GOV.UK lists three rates: the standard rate of 20% on most goods and services, the reduced rate of 5% on some goods and services such as home energy and children's car seats, and the zero rate of 0% on zero-rated goods and services such as most food and children's clothes. Only a VAT-registered business charges VAT; if you are not registered there is no VAT line on your invoice at all.
Common questions
How do I take VAT off a price?
Divide the VAT-inclusive price by 1.2 for the 20% rate (by 1.05 for 5%). The result is the net price; the difference is the VAT. £300 ÷ 1.2 = £250 net, £50 VAT.
Do I add VAT to my invoices if I am not VAT registered?
No. Only a VAT-registered business charges VAT and issues VAT invoices. If you are not registered, your invoice shows the price with no VAT line.
Which VAT rate do I use?
The standard rate of 20% applies to most goods and services. The reduced rate of 5% and the zero rate of 0% apply only to the goods and services HMRC lists — check gov.uk/vat-rates before using them.
How is VAT rounded?
This calculator rounds the VAT to the nearest penny. On an invoice with several lines, GlideQuote calculates VAT on the taxable subtotal and shows it as one line.
Is CIS deducted before or after VAT?
CIS is deducted from the labour part of the invoice, never from the VAT. Use the
CIS calculator to see the full payment.
What GlideQuote does with this
GlideQuote makes VAT invoices on your phone: VAT on the taxable lines, your logo, brand colour and signature on the PDF, quotes that convert to invoices, and deposits or milestone payments when the job is staged.
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Sources
This calculator shows the arithmetic of the published rates; it is not tax advice. For your own situation ask an accountant.
Last updated: 2 November 2026
