VAT Calculator
Add or remove UK VAT instantly — 2026
£
VAT Breakdown
Net amount (ex. VAT)—
VAT amount—
Gross amount (inc. VAT)—
💡 The standard UK VAT rate is 20%. Businesses with turnover over £90,000 must register for VAT. If you're VAT-registered, you charge VAT to customers and reclaim it on purchases.
How to Calculate VAT in the UK
The standard UK VAT (Value Added Tax) rate is 20%. To add VAT to a net price, multiply by 1.20. To remove VAT from a gross price, divide by 1.20.
UK VAT Rates 2026
| Rate | % | Applies to |
|---|---|---|
| Standard Rate | 20% | Most goods and services |
| Reduced Rate | 5% | Home energy, children's car seats, smoking cessation products |
| Zero Rate | 0% | Food, children's clothing, books, newspapers, public transport |
| Exempt | N/A | Insurance, financial services, education, health services |
VAT Registration Threshold
You must register for VAT when your taxable turnover exceeds £90,000 in any 12-month period (2026/27). You can also register voluntarily below this threshold.
What is VAT?
VAT is a consumption tax charged at each stage of the supply chain. As a VAT-registered business, you charge VAT on your sales (output tax) and reclaim VAT on your purchases (input tax). You pay HMRC the difference.
Frequently Asked Questions
To add 20% VAT to a net price, multiply the price by 1.20. For example, a £100 net price becomes £120 including VAT. The VAT amount itself is £20. For the 5% reduced rate, multiply by 1.05. Our calculator does this instantly for any amount.
To remove 20% VAT from a gross (VAT-inclusive) price, divide by 1.20. For example, a £120 gross price divided by 1.20 gives £100 net. The VAT element is £20. This is called 'backing out' or 'extracting' the VAT. Our calculator does this automatically when you select 'Remove VAT'.
The VAT registration threshold for 2026/27 is £90,000. If your taxable turnover exceeds this in any 12-month rolling period, you must register for VAT with HMRC. You can also register voluntarily below this threshold, which can be beneficial if your customers are VAT-registered businesses.
Zero-rated items (0% VAT) include most food, children's clothing, books and newspapers, prescription medicines, and public transport fares. Exempt items (outside the VAT system entirely) include insurance, financial services, education, health services and postal services. Reduced rate (5%) applies to home energy and children's car seats.
Zero-rated goods have a 0% VAT rate — they are still technically VAT-able supplies, so VAT-registered businesses can reclaim input VAT on related purchases. VAT-exempt supplies are outside the VAT system entirely — businesses cannot reclaim input VAT on costs related to exempt supplies. This distinction is important for partial exemption calculations.