Welcome to the UK VAT calculator. Whether you need to determine the standard UK VAT rate of 20% or apply reduced rates of 5% or 0%, this tool allows you to easily add or remove VAT for any transaction. Need to process bulk receipts? Use our dedicated reverse VAT calculator to back out tax from gross totals.
Worked example. £100 net + 20% VAT = £20 VAT → £120 total.
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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.
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.
· Rate references are tracked against HMRC, UK Government publications, and OECD data.
Data methodology reviewed by M. Imtinan Farooq — Data Engineer focused on financial data systems.
Imtinan specializes in financial data systems and multi-state US sales tax modeling. With hands-on experience building data pipelines that attach source metadata, confidence labels, and verification status to tax records, he helps keep TaxesLedger rates auditable and easier to refresh. This is an educational calculator, not tax, accounting, or legal advice. LinkedIn
Data Sources:State DORs · Canada Revenue Agency · EU VAT authorities · Tax Foundation references
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.
The 2026/27 VAT landscape remains largely stable. The £90,000 registration threshold (increased from £85,000 in April 2024) continues to apply. Making Tax Digital (MTD) remains mandatory for all VAT-registered businesses regardless of turnover — there are no exemptions. HMRC's penalty points system for late filing is now fully operational, replacing the old default surcharge regime: businesses accumulate penalty points for late submissions, with a £200 fine triggered at the points threshold.
2026 VAT timeline: key dates to know
For businesses on standard quarterly VAT periods: returns and payments for Q4 2025 (Oct–Dec) were due by 7 February 2026. Q1 2026 (Jan–Mar) was due by 7 May 2026. Q2 2026 (Apr–Jun) is due by 7 August 2026. Q3 2026 (Jul–Sep) is due by 7 November 2026. Q4 2026 (Oct–Dec) is due by 7 February 2027. These deadlines apply to both filing and payment; direct debit payments get an additional 3 working days.
2026 post-Brexit update: selling to the EU
UK businesses selling to EU consumers in 2026 face the same post-Brexit rules established since January 2021. Goods valued under €150 can be declared through IOSS (Import One Stop Shop) at EU entry. Digital services to EU consumers require EU VAT registration (either individual country registrations or the EU OSS). B2B services remain largely subject to the reverse charge. The UK–EU Trade and Cooperation Agreement provides zero-tariff, zero-quota access for qualifying goods, but VAT obligations remain separate.
UK VAT Fractions — Quick Reference
Accountants use "VAT fractions" to pull the VAT straight out of a gross price without computing the net first. At 20%, the VAT is 1/6 of the gross; at 5%, it is 1/21.
VAT Rate
Divide Gross By
VAT Fraction
Example (£120 gross)
20%
1.20
1/6
£100 net + £20 VAT
5%
1.05
1/21
£114.29 net + £5.71 VAT
0%
1.00
0
£120 net + £0 VAT
Understanding UK VAT in 2026
UK Value Added Tax (VAT) is a consumption tax charged on most goods and services sold in the United Kingdom. Since Brexit, the UK operates its own independent VAT system separate from the EU. The standard rate has remained at 20% since January 2011, making it one of the most stable tax rates in Europe. Businesses with taxable turnover above £90,000 must register for VAT, charge it on their sales, and submit returns to HMRC — now exclusively through Making Tax Digital (MTD) compatible software.
UK VAT rates explained
The UK has three VAT rates: the standard rate of 20% (applied to most goods and services), the reduced rate of 5% (domestic energy, child car seats, sanitary products), and the zero rate of 0% (most food, children's clothing, books, public transport, prescription medicines). Some items are VAT-exempt entirely — including financial services, education, health services, and postage stamps. Understanding which rate applies is crucial for accurate pricing and compliance.
Post-Brexit VAT for international sellers
Since 1 January 2021, goods imported into the UK from anywhere are subject to UK VAT at the point of importation. For consignments valued at £135 or less sold via online marketplaces, the marketplace is responsible for collecting and remitting VAT. Non-UK businesses selling B2C into the UK must register for UK VAT regardless of turnover. The UK no longer participates in the EU's OSS/IOSS schemes, so businesses selling to both UK and EU customers need separate registrations.
UK Cross-Border VAT Compliance: OSS/IOSS Equivalent
Since Brexit, the UK operates its own cross-border VAT regime. Here's what non-UK sellers need to know:
UK VAT Registration for Non-UK Sellers
Unlike the EU's €10,000 OSS threshold, non-UK businesses selling B2C to UK consumers must register for UK VAT from the first sale — there is no turnover threshold for foreign sellers. Register directly with HMRC or via a UK tax agent.
Online Marketplace (OMP) Responsibility — The £135 Rule
For goods valued at £135 or less sold through an online marketplace (Amazon, eBay, Etsy, etc.) to UK consumers, the marketplace is legally responsible for collecting and remitting UK VAT. You do not charge VAT at checkout; the OMP does it for you.
Import VAT (Goods Over £135)
For consignments over £135, the buyer (or your freight forwarder) pays UK Import VAT at the border. If you're UK VAT registered, you can reclaim this as input tax. Use our reverse VAT calculator with a custom 20% rate to model import costs.
B2B Reverse Charge
For B2B sales from abroad to UK VAT-registered businesses, use the reverse charge: invoice without UK VAT, include your VAT number and the customer's UK VAT number, and note "Reverse charge — Customer to account for VAT." The UK buyer self-assesses the VAT on their return.
The UK introduced VAT on 1 April 1973, on joining the EEC. The standard rate has moved seven times since — including the brief 2008 crisis cut:
Effective from
Standard rate
Context
Apr 1973
10%
VAT introduced, replacing Purchase Tax
1974
8%
Early cut (a 25% "higher rate" briefly existed for luxuries)
Jun 1979
15%
Thatcher government's tax shift
Apr 1991
17.5%
Raised to fund the poll-tax reduction
Dec 2008
15%
Temporary financial-crisis stimulus
Jan 2010
17.5%
Stimulus reversed
Since 4 Jan 2011
20%
Current rate — unchanged for 15 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.
All rates, thresholds, and regulatory guidance cited on this page are sourced from official government publications and non-partisan research institutions.
International Tax Bodies
🇪🇺
European Commission — VAT Guide
Comprehensive portal for VAT rates and rules across all 27 EU member states, including B2B/B2C regulations.
TaxesLedger is an independent educational tool. We are not affiliated with any government agency. Rate records include source metadata and verification status; always confirm with your jurisdiction's official Department of Revenue before filing. Last registry update: September 11, 2026.
🇬🇧 The complete United Kingdom VAT toolkit
Every United Kingdom VAT task on one site — calculator, rates reference, and reverse tool.
