UK VAT Calculator
Add UK Value Added Tax (VAT) to any net price. Standard 20%, reduced 5%, or zero rate. Fast and free B2B and consumer tax calculator.
Need to Remove UK VAT Instead?
If you have a gross total (VAT-inclusive receipt or checkout price) and need to work backward to find the net price and separate the VAT portion, use our specialized tool.
UK VAT Rates 2026 (United Kingdom VAT Rates)
| Rate Type | Scope | Percentage | Applies to |
|---|---|---|---|
| Standard | 🛍️ Goods & Services | 20% | Most goods and services, vehicles, fuel, standard commercial services. |
| Reduced | 🍽️ Energy & Children | 5% | Home energy/heating, child safety car seats, sanitary products, smoking cessation aids. |
| Zero | 📚 Essentials & Books | 0% | Most food products (except catering/takeaway), children's clothes, books, newspapers, public transport, prescription medicines. |
Source: HM Revenue & Customs (HMRC). Threshold: £90,000 (from April 2024).
For informational purposes only. VAT rates and thresholds change frequently — verify with HM Revenue & Customs (HMRC) before filing. This tool is not a substitute for professional tax advice.
· Rates verified quarterly from HMRC, UK Government publications, and OECD data.
What Is the UK VAT Calculator?
Use this UK VAT Calculator to add VAT to a net price or remove VAT from a VAT-inclusive amount instantly. Calculate 20%, 5%, or 0% UK VAT, determine the VAT portion of any receipt, and convert between VAT-exclusive and VAT-inclusive prices for invoices, quotes, and expense records. Whether you are a freelancer, small business, or consumer, this VAT calculator UK handles the mathematics in seconds.
What is the UK VAT rate? The standard UK VAT rate is 20%. Reduced-rate goods may qualify for 5% VAT, while certain essentials such as most food and children's clothing are zero-rated.
How to Add 20% VAT
Follow these steps to calculate 20% VAT on any net price using our add VAT calculator:
- Enter the net price (the amount before VAT).
- Multiply by 20% (0.20) to find the VAT amount.
- Add the VAT amount to the net price to get the gross total.
Example at 20% VAT:
Net Price: £100.00 + £20.00 VAT = £120.00 total
Formula: Gross Price = Net Price × (1 + VAT Rate)
Current UK VAT Rates (2026)
The UK applies three VAT rates depending on the type of goods or service. Understanding which rate applies to your products is essential for correct pricing and compliance.
Standard Rate (20%) — Applies to most goods and services: electronics, clothing for adults, professional services, consumer products, vehicles, and standard commercial services.
Reduced Rate (5%) — Applies to certain items such as domestic fuel and power, some energy-saving materials, child safety car seats, sanitary products, and mobility aids.
Zero Rate (0%) — Applies to essentials including most food products, children's clothing, books, newspapers, public transport, and prescription medicines. Zero-rated supplies still count toward the VAT registration threshold.
Some goods and services are exempt from VAT entirely, such as financial services, education, and healthcare. Check HMRC guidance to confirm the correct rate for your specific products, or use the calculator above to apply the rate instantly.
VAT on Common Amounts
Quick reference for 20% VAT on frequently used amounts:
| Net Price | VAT (20%) | Total |
|---|---|---|
| £10 | £2 | £12 |
| £50 | £10 | £60 |
| £100 | £20 | £120 |
| £500 | £100 | £600 |
| £1,000 | £200 | £1,200 |
VAT Inclusive vs VAT Exclusive Prices
What Is VAT Exclusive Pricing?
VAT-exclusive pricing shows the price before VAT is added. This format is common in B2B quotations, trade pricing, and professional service agreements. When a supplier quotes “£100 + VAT,” the customer pays £100 plus the applicable VAT amount. Businesses often negotiate VAT-exclusive amounts because they can reclaim the VAT on their own VAT return. Comparing VAT-inclusive and VAT-exclusive prices? Try our VAT Included / Excluded Calculator.
What Is VAT Inclusive Pricing?
VAT-inclusive pricing means VAT is already included in the displayed price. This is the standard way prices are shown to consumers in UK retail, online stores, and most B2C advertising. When a customer sees a price of £120, that is the total they pay, with VAT already accounted for.
Why the Difference Matters
Understanding the distinction between VAT-inclusive and VAT-exclusive pricing prevents invoicing errors and pricing mistakes. Businesses can reclaim the VAT they pay on purchases, so they normally work with VAT-exclusive figures. Consumers cannot reclaim VAT, so they see VAT-inclusive prices. Getting this wrong can mean undercharging customers or miscalculating VAT returns.
How to Remove VAT From a Price
Removing VAT from a gross price is known as a reverse VAT calculation. This is useful when you have a receipt or invoice that includes VAT and need to find the original net price and the VAT portion.
Worked example at 20% VAT:
Gross Price: £120.00
Formula: Net Price = Gross Price ÷ 1.20
£120.00 ÷ 1.20 = £100.00 net
VAT Portion: £120.00 − £100.00 = £20.00
Our remove VAT calculator UK tool handles this automatically. Simply enter the gross total and the tool returns the net price and the VAT amount in seconds.
Who Uses a UK VAT Calculator?
Freelancers
Freelancers use VAT calculators to create accurate client invoices, calculate the correct VAT to charge, and separate VAT from their revenue for tax returns. Getting the VAT amount wrong on an invoice means either undercharging the client or overpaying HMRC.
Small Businesses
Small business owners use VAT calculators when quoting customers, preparing VAT returns, and managing cash flow. Accurate VAT figures ensure that quotes are competitive and that the right amount is set aside for quarterly VAT payments.
E-commerce Sellers
Online sellers and marketplace vendors use VAT calculators to price products correctly across different channels. With VAT-inclusive pricing being mandatory for B2C sales in the UK, e-commerce sellers need reliable tools to determine the right selling price and the VAT due on each transaction.
Accountants and Bookkeepers
Accountants and bookkeepers use VAT calculators to check client invoices, review VAT records, and reconcile accounts. Quick verification of VAT amounts saves time during quarterly filing periods and reduces the risk of errors in VAT returns.
Common VAT Mistakes
- Adding 20% directly to a VAT-inclusive amount — If the price already includes VAT, adding another 20% double-charges the tax. Always confirm whether the amount is inclusive or exclusive first.
- Using the wrong VAT rate — Some items appear similar but attract different rates. For example, hot takeaway food is standard-rated (20%) while cold takeaway food is zero-rated (0%).
- Confusing exempt goods with zero-rated goods — Zero-rated (0%) sales count toward the VAT registration threshold and allow input tax recovery. Exempt supplies do not count and do not allow recovery.
- Forgetting VAT registration obligations — The £90,000 threshold applies to rolling 12-month turnover, not the financial year. Missing the threshold means backdated VAT liability.
- Incorrect VAT invoice formatting — Missing the VAT registration number, incorrect rate, or omitted amounts can lead to HMRC penalties and delayed input tax recovery.
UK VAT Registration Threshold
- Current threshold: £90,000 taxable turnover
- Registration required once threshold is exceeded
- Voluntary registration available below the threshold
- Rolling 12-month basis: the threshold applies to your total taxable turnover over any consecutive 12-month period
Once registered, you must include your VAT registration number on all invoices, charge the correct VAT rate, and keep digital records in compliance with Making Tax Digital (MTD) requirements. Businesses should verify the current registration threshold directly through HMRC because the figure can change.
Voluntary registration can be advantageous if you want to reclaim VAT on business purchases or if your clients prefer dealing with VAT-registered suppliers.
VAT Invoice Requirements
A valid VAT invoice must include specific information for HMRC compliance. A full VAT invoice normally contains:
- Supplier name and address
- VAT registration number
- Invoice date
- A description of the goods or services supplied
- The net amount (excluding VAT)
- The VAT rate applied
- The VAT amount charged
- The gross total (including VAT)
Accurate invoices are essential for VAT reporting and record keeping. HMRC can request invoices during a compliance check, and errors may result in penalties or delayed input tax recovery. Always keep copies of VAT invoices for at least six years.
Frequently asked questions
Quick answers to the most common questions users ask.
What is VAT in the UK?
VAT (Value Added Tax) is a consumption tax charged on many goods and services sold in the UK. Businesses collect VAT on behalf of HM Revenue & Customs and include it in the final purchase price where applicable. The standard rate is 20%, with reduced rates of 5% and 0% for specific categories.
What is the standard VAT rate in the UK?
The standard UK VAT rate is 20%. It applies to most goods and services, including electronics, vehicles, professional services, and consumer products. Businesses registered for VAT must generally charge this rate unless a reduced or zero rate applies to their specific product or service.
How do I calculate 20% VAT?
Multiply the net amount by 0.20 to find the VAT amount, then add it to the net price to determine the gross total. For example, £100 × 0.20 = £20 VAT, making the total £120. Our calculator above does this instantly.
How do I remove VAT from a price?
Divide the gross amount by 1.20 when the VAT rate is 20%. For example, £120 ÷ 1.20 = £100 net, with £20 being the VAT portion. This reverse calculation is commonly used when reviewing receipts and supplier invoices. Use our Reverse VAT Calculator for instant results.
What is VAT-inclusive pricing?
VAT-inclusive pricing means VAT has already been included in the displayed price. This is the standard way prices are shown to consumers in UK retail, online stores, and most B2C advertising. The price you see is the total you pay.
What is VAT-exclusive pricing?
VAT-exclusive pricing shows the base amount before VAT is added. This format is common in B2B quotations, trade pricing, and professional service agreements. Businesses often work with VAT-exclusive figures because they can reclaim the VAT on their purchases.
Do I need to register for VAT?
Businesses may need to register when taxable turnover exceeds the VAT registration threshold of £90,000. Voluntary registration is also possible below the threshold, which can be beneficial if you want to reclaim VAT on business purchases or if your clients prefer dealing with VAT-registered suppliers.
Can businesses reclaim VAT?
Registered businesses can reclaim eligible VAT paid on business-related purchases according to HMRC rules. This is done through quarterly VAT returns, where input VAT (on purchases) is offset against output VAT (on sales). Valid VAT invoices are required as evidence for any reclaim.
What is the VAT threshold for UK businesses?
The current VAT registration threshold in the UK is £90,000 in taxable turnover over any rolling 12-month period. Once your total taxable turnover exceeds this figure, you must register for VAT with HMRC. The threshold is reviewed periodically and can change, so businesses approaching the limit should monitor HMRC announcements.
How do I add 20% VAT to a price in Excel?
To add 20% VAT in Excel, multiply the net price by 1.20. For example, if cell A1 contains £100, enter =A1*1.20 in another cell to get £120. Alternatively, use =A1*0.20 to calculate only the VAT amount (£20), then add it to the original price. This works for any rate — replace 1.20 with 1.05 for 5% or 1.00 for 0%.
What items are exempt from VAT in the UK?
VAT-exempt goods and services include insurance, postal services, betting and gaming, finance and credit, education and vocational training, and certain health services provided by doctors and dentists. Unlike zero-rated items, exempt supplies do not count toward the VAT registration threshold, and businesses cannot reclaim input VAT on purchases related to exempt supplies.
How much VAT do I charge if I am not VAT-registered?
If you are not VAT-registered, you must not charge VAT on your invoices. Your prices should be shown as VAT-exclusive with no VAT added. Once your turnover exceeds £90,000 or you voluntarily register, you must begin charging VAT at the correct rate and include your VAT registration number on all invoices from your effective registration date.
What is the difference between input VAT and output VAT?
Input VAT is the VAT you pay on business purchases such as stock, equipment, and services. Output VAT is the VAT you charge to your customers on sales. On your quarterly VAT return, you calculate the difference: output VAT minus input VAT. If output VAT exceeds input VAT, you pay the difference to HMRC. If input VAT is higher, you can claim a refund.
How do I calculate VAT on a receipt?
To calculate VAT from a receipt total, check whether the price includes VAT. If it does, divide the total by 1.20 (for 20% VAT) to find the net amount, then subtract the net from the total to find the VAT portion. For example, a £120 receipt ÷ 1.20 = £100 net, meaning £20 is VAT. Our VAT Reverse Calculator does this instantly.
What happens if I charge the wrong VAT rate?
Charging the wrong VAT rate can result in HMRC penalties and interest charges. If you overcharge a customer, you must refund the difference. If you undercharge, you may still be liable for the full VAT amount even if you did not collect it from the customer. HMRC can also issue penalty assessments for incorrect returns. Always verify the correct rate for your specific goods or services.
Is VAT charged on shipping costs in the UK?
Yes, VAT is normally charged on shipping and delivery costs in the UK. The VAT rate applied to postage and courier fees follows the same rate as the goods being delivered. For example, shipping standard-rated goods attracts 20% VAT, while shipping zero-rated food attracts 0%. Separate handling fees may also be subject to VAT.
How do I show VAT on an invoice in the UK?
A valid UK VAT invoice must clearly show the supplier name and address, VAT registration number, invoice date, a description of the goods or services, the net amount excluding VAT, the VAT rate applied, the VAT amount charged, and the gross total including VAT. For reduced or zero-rated supplies, show each rate separately with the applicable amount. HMRC recommends sequential invoice numbering.
Can I backdate a VAT registration in the UK?
HMRC may allow you to backdate a VAT registration in certain circumstances, typically by up to four years. This applies if you can show that you were liable to register earlier but failed to do so, or if you meet the criteria for voluntary registration with retrospective effect. You must provide evidence of taxable supplies made during the period. HMRC decides on a case-by-case basis and penalties may apply for late registration.
More UK VAT Tools
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Official Sources
VAT rates and thresholds on this page are sourced from HM Revenue & Customs (HMRC), UK Government publications, and OECD consumption tax data.
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