🇬🇧 UK20% / 5% / 0%HMRC RatesAdd or Remove

VAT Calculator UK 2026

Add or remove UK VAT from prices in GBP. Standard 20%, reduced 5%, zero rate, or a custom %. Built for invoices, quotes, and VAT-inclusive receipts.

By Sammy S. · Founder · AuthorUpdated for 2026

20%

Standard rate

Reduced rate

£120.00

£100 net + 20% VAT

£90,000

Registration threshold

Calculate UK VAT (GBP)

Choose add or remove, pick the HMRC rate band, and enter the amount — results update instantly.

Your inputs

Mode, amount (GBP), and VAT rate

Calculation mode

Enter the net (ex-VAT) price to get the VAT-inclusive total.

Net price (ex-VAT)

VAT rate

Most goods and services

Gross total (incl. VAT)

20% VAT

£120.00

Net (ex-VAT)£100.00

VAT @ 20%£20.00

Customer pays£120.00

£100.00 × 20% = £20.00 VAT.

How to use

Choose add or remove

Add VAT to a net price, or strip VAT from a VAT-inclusive total.

Select the rate

Standard 20%, reduced 5%, zero, or enter a custom %.

Enter the amount (GBP)

See VAT, net, and gross instantly — rounded to the nearest penny.

Official rates

Standard rate20%

Reduced rate5%

Zero rate0%

Example amounts

£50 £100 £250 £500 £1,000 £5,000

Hub

UK VAT calculator

Add or remove VAT for invoices, quotes, and receipts.

The VAT amount and total (or ex-VAT price) above come from the amount, rate, and add/remove mode you enter — not a live HMRC feed. Rates match published UK VAT bands on gov.uk. Below are the formulas, steps, and worked examples from the same engine as the live calculator.

Worked example — add 20%

Add 20% VAT — £100.00 net

Mode	Add VAT
Net amount	£100.00
Rate	20%
VAT	£20.00
Gross total	£120.00

£100.00 × 20% = £20.00 VAT → £120.00 gross

Worked example — remove 20%

Remove 20% VAT — £120.00 gross

Mode	Remove VAT
Gross (incl. VAT)	£120.00
Rate	20%
Net (ex-VAT)	£100.00
VAT embedded	£20.00

£120.00 ÷ 1.20 = £100.00 net; VAT = £20.00

Reduced rate (5%)

£100.00 × 5% = £5.00 VAT → £105.00 gross

Formulas

Add VAT — VAT amount: VAT = Net price × (Rate % ÷ 100)
Add VAT — gross total: Gross = Net + VAT
Remove VAT — net price: Net = Gross ÷ (1 + Rate % ÷ 100)
Remove VAT — VAT embedded: VAT = Gross − Net
Rounding: All GBP amounts rounded to the nearest penny (2 decimal places)

Calculation steps

Choose the VAT rate
Standard 20%, reduced 5%, zero 0%, or a custom %
Most goods and services use the standard rate. Reduced and zero rates apply only to qualifying supplies — check HMRC guidance for your product.
Choose add or remove mode
Add: amount is ex-VAT · Remove: amount includes VAT
Add mode prices a shelf/net figure up to a customer total. Remove mode backs VAT out of an invoice or receipt gross.
Add VAT
VAT = Amount × Rate; Gross = Amount + VAT
Multiply the net price by the rate, then add VAT to get the gross.
Remove VAT
Net = Gross ÷ (1 + Rate); VAT = Gross − Net
Because Gross = Net × (1 + Rate), divide the VAT-inclusive total by (1 + rate) to isolate the net.
Round to pence
round(value, 2) — half-up to 2 decimals
Matches typical invoice rounding. Tiny differences can appear if you add then remove on odd amounts.

This tool models simple add/remove VAT on a single amount. It does not cover Flat Rate Scheme percentages, partial exemption, capital goods scheme adjustments, import VAT, postponed VAT accounting, margin schemes, or whether a specific supply is exempt vs zero-rated. Always confirm the correct rate and registration rules with HMRC or an adviser.

Official sources

Key takeaways — UK VAT

UK standard VAT is 20% on most goods and services (since 4 January 2011).
Reduced rate is 5% (e.g. children’s car seats and domestic fuel/power when conditions apply); zero rate is 0% (e.g. most food and children’s clothes).
Exempt supplies (e.g. many financial and insurance services) are not the same as zero-rated — no VAT is charged, and input VAT recovery rules differ.
You must register for VAT if taxable turnover exceeds £90,000; you may apply to cancel if it falls below £88,000.
To add VAT: multiply net by the rate. To remove VAT: divide gross by (1 + rate). Example: £100.00 net at 20% → £20.00 VAT → £120.00 gross.

Jump to calculator →£100 VAT example →

Add VAT, remove VAT, and the 1/6 fraction

Same engine as the live calculator. Example at 20%: £100.00 × 20% = £20.00 VAT → £120.00 gross

Add VAT (ex-VAT → inclusive)

VAT = net × 0.2 · Gross = net + VAT

£100.00 × 20% = £20.00 → £120.00

Remove VAT (inclusive → ex-VAT)

Net = gross ÷ 1.20 · VAT = gross − net

£120.00 ÷ 1.20 = £100.00 (VAT £20.00)

VAT fraction shortcut (20%)

VAT embedded = gross × (20 ÷ 120) = gross × 1/6

£120.00 × 1/6 = £20.00

What is VAT in the UK?

Value Added Tax (VAT) is a consumption tax charged on most goods and services sold by VAT-registered businesses. Customers usually see VAT-inclusive prices in shops; B2B quotes often show amounts ex-VAT with VAT added on the invoice.

The standard rate is 20% (in force since 4 January 2011). HMRC also publishes a reduced rate of 5% and a zero rate of 0% for qualifying supplies. Some supplies are exempt or outside the scope of VAT entirely.

Output VAT vs input VAT

Output VAT is the VAT you charge customers on taxable sales. Input VAT is the VAT you pay on business purchases. On a typical VAT return, you pay HMRC the difference (output − input), or reclaim if input exceeds output.

This calculator models a single price line (add or remove VAT). It does not compute a full VAT return, partial exemption, or Flat Rate Scheme percentages.

Zero-rated vs exempt (common confusion)

Zero-rated supplies are still “taxable” at 0%. Registered businesses often reclaim related input VAT. Exempt supplies are treated differently: you generally do not charge VAT, and input VAT recovery is usually restricted.

Examples of exemption include many insurance and financial services (see gov.uk VAT rates and HMRC notices). Always check the exact supply — packaging, place of supply, and who the customer is can change the answer.

VAT-inclusive vs VAT-exclusive pricing

Consumer-facing retail prices in the UK are typically VAT-inclusive. If a shelf price already includes VAT, use Remove VAT mode to find the net and VAT split for bookkeeping.

B2B invoices for VAT-registered sellers usually show net, VAT rate, VAT amount, and gross. For a £100.00 net standard-rated line: VAT £20.00, gross £120.00.

When registration matters for pricing

You must register if taxable turnover is more than £90,000 (or you expect it to be). Below that, registration is optional. Once registered, you must charge the correct VAT rate on taxable supplies and file returns (usually quarterly).

If taxable turnover falls below £88,000, you may apply to cancel (optional), subject to HMRC rules. Deregistration is different from simply stopping to charge VAT while still registered.

UK VAT rates (official bands)

Published bands from gov.uk/vat-rates. Always confirm the category for your goods or services.

Band	Rate	Typical use
Standard rate	20%	Most goods and services
Reduced rate	5%	e.g. children’s car seats, home energy
Zero rate	0%	e.g. most food, children’s clothes

What usually falls in each band?

Illustrative examples drawn from gov.uk VAT rates and HMRC’s rates-of-VAT guidance. Conditions often apply — this is not a complete list.

Band	Rate	Examples	Note
Standard	20%	Most goods and services; hot takeaways; alcohol; confectionery; many soft drinks	Default rate unless a relief applies
Reduced	5%	Children’s car seats; domestic fuel and power (when conditions apply)	Only qualifying supplies — check HMRC notices
Zero-rated	0%	Most food for human consumption; children’s clothes; many book/newspaper sales; many exports (conditions apply)	Taxable at 0% — input VAT often reclaimable if registered
Exempt	n/a	Many financial and insurance services; postage stamps; some education, health, and cultural admissions	Not the same as zero-rated — usually restricts input VAT recovery

Registration thresholds

Taxable turnover is the total value of supplies that are not exempt. Source: gov.uk VAT thresholds.

Must register (taxable turnover)	More than £90,000
NI acquisitions from the EU (goods into NI)	More than £90,000
May cancel registration (optional)	Less than £88,000

Accounting scheme thresholds

Scheme	Join	Leave
Flat Rate Scheme	£150,000 or less	More than £230,000
Cash Accounting Scheme	£1,350,000 or less	More than £1,600,000
Annual Accounting Scheme	£1,350,000 or less	More than £1,600,000

VAT on common net amounts (standard vs reduced)

Engine-sourced ladder — same math as the calculator. Open an amount page for a dedicated FAQ.

Net	20% VAT	Gross @ 20%	5% VAT	Gross @ 5%
£50.00	£10.00	£60.00	£2.50	£52.50
£100.00	£20.00	£120.00	£5.00	£105.00
£250.00	£50.00	£300.00	£12.50	£262.50
£500.00	£100.00	£600.00	£25.00	£525.00
£1,000	£200.00	£1,200.00	£50.00	£1,050.00
£5,000	£1,000.00	£6,000.00	£250.00	£5,250.00

Common VAT quoting mistakes

Treating “essential” items as automatically reduced-rate

Reduced rate is 5% only for specific categories (e.g. children’s car seats, domestic fuel/power when conditions apply). Most everyday goods are standard-rated.

Confusing zero-rated food with catering

Most cold food for human consumption is zero-rated, but catering, hot takeaways, alcohol, confectionery, and many soft drinks are standard-rated (HMRC food/catering notices).

Adding 20% to a price that already includes VAT

Double-counting VAT is a common quote error. If the figure is VAT-inclusive, remove VAT first (or start from the net).

Using Flat Rate Scheme % in this tool

Flat Rate Scheme uses a trade-specific percentage of turnover, not the 20%/5%/0% goods rates. This calculator does not model Flat Rate percentages.

Who this helps

Freelancers & small businesses

Price quotes ex-VAT or inclusive, and check whether turnover is approaching the registration threshold.

Bookkeepers & accountants

Quick sanity-check of invoice nets and grosses at standard or reduced rate.

Shoppers & buyers

See how much VAT is embedded in a VAT-inclusive price before comparing deals.

Checklist before you quote VAT

Confirm whether the supply is standard, reduced, zero-rated, or exempt — not every low-tax item is reduced rate.
Decide if your quote is ex-VAT (B2B / registered) or VAT-inclusive (typical consumer retail).
Use remove mode on receipt totals that already include VAT.
Track taxable turnover against the £90,000 registration threshold.
Keep VAT records if registered; returns are usually quarterly.
Cross-check unusual product categories on HMRC’s rates-of-VAT guidance.

Amount pages

£50 VAT £100 VAT £250 VAT £500 VAT £1,000 VAT £5,000 VAT

Limitations

Does not model Flat Rate Scheme percentages, partial exemption, imports, postponed VAT accounting, margin schemes, or whether a supply is exempt versus zero-rated. For US state sales tax see sales tax calculator; for Canada see GST/HST calculator; for UK take-home pay see UK paycheck calculator.

UK VAT calculator FAQ

The standard VAT rate is 20%. The reduced rate is 5% and the zero rate is 0%. Some supplies are exempt from VAT entirely. Source: gov.uk/vat-rates.

Multiply the net (ex-VAT) price by 0.2 for the VAT, then add it to the net. Example: £100.00 × 20% = £20.00 VAT → £120.00 gross. Use Add VAT mode in the calculator.

Divide the gross by (1 + rate). At 20%: £120.00 ÷ 1.20 = £100.00 net, with £20.00 VAT. The 20% “VAT fraction” is also gross × 1/6. Use Remove VAT mode.

The reduced rate is 5%. It applies to certain goods and services (for example children’s car seats and domestic fuel and power) when HMRC conditions are met. Example: £100.00 net → £5.00 VAT → £105.00 gross.

Zero-rated supplies are taxable at 0% — you generally can reclaim related input VAT if registered. Exempt supplies (for example many financial and insurance services) usually restrict input VAT recovery. Check HMRC guidance for your supply type.

You must register if your VAT taxable turnover is more than £90,000 (or you expect it to be). You can also register voluntarily below that threshold. Source: gov.uk how VAT works / VAT thresholds.

If you are VAT-registered and taxable turnover falls below £88,000, you may apply to cancel (optional), subject to HMRC rules. You must cancel if you stop making taxable supplies or are otherwise no longer eligible.

Per gov.uk VAT thresholds: Flat Rate Scheme — join at £150,000 or less taxable turnover, leave above £230,000. Cash Accounting and Annual Accounting — join at £1,350,000 or less, leave above £1,600,000. This calculator does not apply Flat Rate percentages to prices.

Most food for human consumption is zero-rated, but many items are standard-rated — including catering, hot takeaways, alcoholic drinks, confectionery, crisps, ice cream, and many soft drinks. Check HMRC Notice 701/14 and 709/1 for your product.

No. VAT is UK-wide. Income tax bands differ in Scotland, but VAT rates and thresholds are the same across England, Scotland, Wales, and Northern Ireland (with some Northern Ireland–EU trade rules that do not change the standard/reduced/zero percentages).

This tool rounds each GBP amount to the nearest penny (standard half-up to 2 decimals). Live payroll/invoice software may round per line or per document — tiny 1p differences can appear on odd amounts.

No. Figures use published gov.uk / HMRC rates for modelling only. Confirm the correct rate for your goods or services and your registration position with HMRC or a tax adviser.

Related calculators

UK Tax Calculator

Income tax + NI

Net to Gross UK

Take-home → gross salary

VAT Calculator Ireland

Add or remove Revenue VAT rates

GST Calculator Australia

Add or remove ATO-standard GST

GST Calculator New Zealand

Add or remove IRD-standard 15% GST

Stamp Duty UK

SDLT, LBTT & LTT

National Insurance UK

Class 1, 2 & 4

Self Assessment UK

Sole trader Income Tax + NI