Free tool · HMRC rates · Updated July 2026
VAT Calculator UK
Add or remove UK VAT in one step. Enter an amount and see the net, VAT and gross figures side by side at 20%, 5% or 0%, with unit mode and reverse VAT built in.
Add VAT (amount is net)
Remove VAT (amount is gross)
Same amount at every UK rate
| Rate | VAT (added) | Gross | VAT (removed) | Net |
|---|
Enter your lines once. We total them both ways at the same time: treated as prices without VAT and as prices with VAT already in them.
| Description | Units | Unit price | Line total |
|---|
If your prices exclude VAT
If your prices include VAT
Two tools in one. Start from the VAT amount and we rebuild net and gross, or enter net and gross together and we identify the rate that was charged.
1. Work back from the VAT amount
Worked back at the selected rate
2. Check what rate was charged
Rate check result
How to calculate UK VAT
The UK charges VAT at 20% on most goods and services, administered by HMRC. Adding it multiplies the net price by 1.2; removing it divides the gross by 1.2. A £250 quote carries £50 of VAT for a £300 total, and a £300 receipt strips back to £250 net. The classic error is subtracting 20% from a gross figure, which overshoots because the VAT was charged on the smaller net, and the calculator's remove side exists to make that mistake impossible.
Remove: Net = Gross / 1.20
VAT fraction: VAT = Gross x 1/6
The 1/6 fraction is the bookkeeper's shortcut at 20%: one sixth of any gross figure is its VAT content, so a £300 receipt holds £50 without any intermediate step.
UK VAT rates in 2026
| Rate | What it covers |
|---|---|
| 20% Standard | Most goods and services: electronics, adult clothing, alcohol, restaurant meals, professional services, fuel at the pump. |
| 5% Reduced | Domestic gas and electricity, children's car seats, some residential conversions and mobility aids for older people. |
| 0% Zero rate | Most food (not catering or hot takeaway), children's clothing and footwear, books, newspapers and e-publications, new-build homes, exports. Energy-saving materials for homes are also zero-rated for a temporary period. |
| Exempt | Financial services, insurance, education, health and postage. No VAT charged and no input VAT recovery. |
The line between zero-rated and standard-rated food is famously fine: a plain biscuit is zero-rated while a chocolate-covered one is 20%, and cold takeaway food is zero-rated while the same food served hot is standard-rated. When a product sits near a boundary, HMRC's published VAT notices are the reference that decides it.
Registration, Making Tax Digital and returns
A UK business must register for VAT once taxable turnover in any rolling 12 months passes £90,000, a threshold in force since April 2024, with deregistration available below £88,000. Registration and filing run through HMRC, and since Making Tax Digital became universal for VAT, returns must be submitted through compatible software rather than typed into a website. Returns are normally quarterly, due one month and seven days after the period ends, with payment collected the same day or by direct debit shortly after.
A UK VAT registration number is GB followed by nine digits, with an XI prefix for businesses trading under the Northern Ireland Protocol. Small businesses can simplify accounting through the Flat Rate Scheme, paying a fixed percentage of gross turnover that varies by trade, though the 16.5% category for limited cost traders removes most of the benefit for service businesses with few purchases. Builders and their subcontractors operate under the domestic reverse charge for construction services, where the customer rather than the supplier accounts for the VAT, and importers use postponed VAT accounting to declare and reclaim import VAT on the same return instead of paying at the border.
UK VAT and Irish VAT side by side
Traders working across the Irish Sea juggle two systems that rhyme without matching. The UK standard rate is 20% against Ireland's 23%; the UK has one reduced rate at 5% where Ireland has two at 13.5% and 9%; and both keep zero rating on staple food, children's clothing and print. Since Brexit, goods moving between Great Britain and Ireland are imports and exports with customs formalities, while Northern Ireland stays inside the EU VAT area for goods. Selling into Ireland? The VAT Calculator Ireland carries every Irish rate, and the imports and exports guide covers the border mechanics from the Irish side.
Common questions
What is the VAT rate in the UK?
The standard rate is 20%, with a 5% reduced rate on domestic energy and children's car seats, and a 0% zero rate on most food, children's clothing, books, newspapers and new homes. Financial services, insurance, education and health are exempt.
How do I remove VAT from a UK price?
Divide the gross price by 1.2 at the standard rate. A 300 pound receipt holds a 250 pound net and 50 pounds of VAT. The shortcut: one sixth of any gross amount at 20% is its VAT content.
What is the UK VAT registration threshold?
90,000 pounds of taxable turnover in any rolling 12-month period, in force since April 2024. Deregistration is available below 88,000 pounds. Returns are filed through Making Tax Digital compatible software.
What does a UK VAT number look like?
GB followed by nine digits, for example GB123456789. Businesses trading in goods under the Northern Ireland Protocol use an XI prefix instead.