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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.

01 —INPUTS
Calculate VAT
02 —RESULTS

VAT Amount

£200.00

20% VAT

Net Amount

£1,000.00

Excluding VAT

Gross Amount

£1,200.00

Including VAT

VAT Registration Check
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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.
How do I check whether a UK VAT number is valid?
Use HMRC's free UK VAT number guide to open the official checker. It confirms validity and shows the registered business name and address. You need the number itself — the service cannot search by business name.
Do I need Making Tax Digital software for VAT returns?
Yes, unless HMRC has granted an exemption or a special filing route applies. VAT returns are normally submitted using Making Tax Digital-compatible accounting or bridging software, and the required VAT records must be kept digitally.
How do VAT repayments work?
HMRC normally processes a repayment automatically from a VAT Return showing that you are owed money. GOV.UK says repayments are usually made within 30 days, although checks can take longer. You can track the repayment in your business tax account.

Sources

Registered for VAT? Create a proper VAT Invoice free with our business document generators — net, VAT and gross shown automatically.

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