VAT Calculation
£
Enter the net amount (excluding VAT) to calculate the gross total.
About UK VAT Rates
Standard Rate (20%)

Most goods and services are subject to the standard rate of 20%. This includes most retail products, professional services, and general consumer goods.

Reduced Rate (5%)

Applies to certain goods and services including:

  • Domestic fuel and power
  • Installation of energy-saving materials
  • Children's car seats
  • Certain renovation and alteration work
  • Sanitary hygiene products
Zero Rate (0%)

Zero-rated items include:

  • Most food (not restaurant meals or hot takeaways)
  • Books, newspapers, and magazines
  • Children's clothing and shoes
  • Public transport
  • Prescription medicines
VAT Registration

Businesses must register for VAT if their taxable turnover exceeds £90,000 (2026/27 threshold). Once registered, you must charge VAT on your sales and can reclaim VAT on business purchases.

Frequently Asked Questions

VAT (Value Added Tax) is a consumption tax added to the price of goods and services in the UK. Businesses registered for VAT charge it on their sales and can reclaim VAT on their business purchases. The standard rate is 20%, with reduced rates of 5% and 0% for certain items.

The standard UK VAT rate is 20%. There is also a reduced rate of 5% for items like domestic energy and children's car seats, and a zero rate (0%) for essentials like most food, children's clothing, and books.

You must register for VAT if your taxable turnover exceeds £90,000 in any 12-month period (2026/27 threshold). You can also voluntarily register below this threshold if it benefits your business.

To remove VAT from a gross (VAT-inclusive) amount, divide the gross amount by 1.20 (for 20% VAT) to get the net amount. The VAT amount is the difference between gross and net. For example, £120 gross ÷ 1.20 = £100 net, with £20 VAT.

Zero-rated goods are taxable but at 0% VAT, and businesses can reclaim VAT on related purchases. VAT-exempt goods are not taxable at all, and businesses cannot reclaim VAT on related purchases. Zero-rated items include most food and children's clothing; exempt items include insurance and education.
Quick Reference
VAT Formulas

Add VAT:
Gross = Net × (1 + VAT Rate)

Remove VAT:
Net = Gross ÷ (1 + VAT Rate)

Find VAT Amount:
VAT = Gross - Net