UK VAT Calculator
Add or remove VAT at the standard (20%), reduced (5%), or zero rate. Enter your annual turnover to check whether you need to register for VAT.
VAT Amount
£200.0020% VAT
Net Amount
£1,000.00Excluding VAT
Gross Amount
£1,200.00Including VAT
UK VAT rates (2026/27)
There are three UK VAT rates. The rate you charge depends on the goods or service, not on your business — many businesses charge a mix. "Exempt" (e.g. insurance, most financial services, postage) is different from zero-rated: exempt sales don't let you reclaim related input VAT.
| Rate | % | Typical examples |
|---|---|---|
| Standard | 20% | Most goods and services, electronics, professional fees, adult clothing, alcohol |
| Reduced | 5% | Domestic gas and electricity, children's car seats, home energy-saving materials, nicotine patches |
| Zero | 0% | Most food, books, newspapers, children's clothing and shoes, public transport, prescription medicines |
Registration threshold £90,000 · deregistration £88,000 (both unchanged since 1 April 2024).
Adding 20% VAT to common amounts
At the standard rate, the gross (VAT-inclusive) price is the net price × 1.2. To go the other way and strip VAT out of a gross figure, divide by 1.2 — the VAT is one-sixth of the gross.
| Net (ex-VAT) | VAT @ 20% | Gross (inc-VAT) |
|---|---|---|
| £100 | £20 | £120 |
| £250 | £50 | £300 |
| £500 | £100 | £600 |
| £1,000 | £200 | £1,200 |
| £2,500 | £500 | £3,000 |
| £10,000 | £2,000 | £12,000 |
Worked examples
Add 20% to £1,000.00
Net £1,000.00 × 1.2 = £1,200.00 gross, of which £200.00 is VAT.
Remove VAT from £600.00
Gross £600.00 ÷ 1.2 = £500.00 net; VAT = £100.00 (one-sixth of gross).
Reduced 5% on £1,000.00
Energy and other reduced-rate items: £1,000.00 × 1.05 = £1,050.00, VAT £50.00.
Frequently asked questions
What is the UK VAT rate?
The standard UK VAT rate is 20%, which applies to most goods and services. There is also a reduced rate of 5% for items such as children's car seats, home energy, and nicotine patches, and a zero rate (0%) for most food, children's clothing, books, and newspapers.
How do I remove VAT from a gross (VAT-inclusive) price?
Divide the gross amount by 1.2 to get the net (VAT-exclusive) figure, then subtract that from the gross to find the VAT. The VAT is one-sixth of the gross at the 20% rate, so a quick check is gross × 1/6. For example, £600 gross ÷ 1.2 = £500 net, and £600 × 1/6 = £100 VAT.
How do I add VAT to a net price?
Multiply the net amount by 1.2 at the standard 20% rate (or by 1.05 for the reduced 5% rate). The VAT is net × 20%. For example, £1,000 net × 1.2 = £1,200 gross, of which £200 is VAT.
When do I need to register for VAT?
You must register for VAT if your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to exceed it in the next 30 days. This threshold has applied since 1 April 2024 and is unchanged for 2025/26 and 2026/27. You can also register voluntarily below the threshold to reclaim VAT on business purchases.
What is the VAT deregistration threshold?
You can apply to deregister for VAT if your VAT-taxable turnover falls below £88,000 in the next 12 months. Deregistration is optional, not compulsory, and is worth considering only if you mainly sell to consumers (who cannot reclaim VAT) rather than to VAT-registered businesses.
When are VAT returns and payments due?
Most VAT-registered businesses file quarterly. The return and payment are both due one calendar month and seven days after the end of the VAT period — so a quarter ending 31 March is due by 7 May. All VAT-registered businesses must keep digital records and file through Making Tax Digital (MTD) compatible software.
What items are subject to the reduced 5% VAT rate?
The reduced 5% VAT rate applies to domestic fuel and power (gas, electricity), children's car seats and booster seats, certain energy-saving materials installed in residential premises, nicotine patches and gum, and welfare services. Most food, books, newspapers and children's clothing are zero-rated (0%) rather than reduced. The full list is on GOV.UK.
Sources
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