VAT Calculator
Most goods and services
What is the VAT Calculator?
UK VAT (Value Added Tax) is a consumption tax charged on most goods and services. The standard rate is 20%, the reduced rate is 5% (children's car seats, domestic energy) and the zero rate is 0% (most food, books). VAT-registered businesses charge VAT on sales and reclaim VAT on purchases.
Last reviewed: against HMRC rates for 2024/25 & 2025/26.
UK VAT rates — 2026/27
Worked example
Net £100 + 20% VAT = £120 gross. To remove VAT from a £120 gross price: £120 ÷ 1.20 = £100 net (£20 VAT).
Frequently asked questions
+How do I add 20% VAT to a price?
Multiply the net price by 1.20. £100 net × 1.20 = £120 gross (£20 VAT). For 5% reduced rate, multiply by 1.05.
+How do I remove VAT from a price?
Divide the gross price by 1.20 (for 20% standard rate). £120 ÷ 1.20 = £100 net, which means £20 was VAT.
+When must I register for VAT?
When your taxable turnover exceeds £90,000 in any rolling 12-month period (since 1 April 2024). You can also register voluntarily below the threshold.
+What's the difference between zero-rated and VAT-exempt?
Zero-rated supplies are taxable at 0% — you can reclaim input VAT. Exempt supplies (e.g. insurance, finance, education) are outside VAT and you cannot reclaim related input VAT.