What is the current UK VAT rate?

The standard UK VAT rate is 20%. A reduced rate of 5% applies to certain goods like home energy, and a zero rate (0%) applies to essentials like most food and children's clothing.

How do I add VAT to a price?

To add VAT at 20%, multiply the net amount by 1.20. For example, £100 × 1.20 = £120 gross. The VAT portion is £20.

How do I remove VAT from a price?

To remove 20% VAT from a gross price, divide by 1.20. For example, £120 ÷ 1.20 = £100 net. The VAT portion is £20.

When must a business register for VAT in the UK?

A business must register for VAT when its taxable turnover exceeds £90,000 in a 12-month period, or if it expects to exceed this threshold within the next 30 days.

VAT Calculator UK – Instantly Add or Remove VAT (2025)

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About UK VAT

Value Added Tax (VAT) is a consumption tax applied to most goods and services sold in the UK. Whether you're a freelancer invoicing a client or a shopper checking a receipt, understanding how VAT is calculated helps you know exactly where your money goes.

UK VAT Rates (2025)

Standard Rate — 20% applies to the majority of goods and services.
Reduced Rate — 5% covers home energy, children's car seats, and energy-saving materials.
Zero Rate — 0% applies to most food, children's clothing, books, and public transport.

Some items are VAT exempt (like insurance, education, and health services) and sit outside the VAT system entirely.

The Formulas Behind This Calculator

Adding VAT: Gross = Net × (1 + rate)

Example: £100 × 1.20 = £120 gross (VAT = £20)

Removing VAT: Net = Gross ÷ (1 + rate)

Example: £120 ÷ 1.20 = £100 net (VAT = £20)

When Must You Register for VAT?

You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to exceed this threshold within 30 days. Voluntary registration is possible below this threshold and can be beneficial for reclaiming input VAT.

Frequently Asked Questions

The standard UK VAT rate is 20% and has been since January 2011. A reduced rate of 5% and a zero rate also exist for specific categories of goods and services.

Multiply the net (ex-VAT) amount by 1.20 for the standard rate. For example, if your net price is £500, the gross price including VAT is £500 × 1.20 = £600, of which £100 is VAT.

Divide the gross (inc-VAT) amount by 1.20 for the standard rate. For example, £240 ÷ 1.20 = £200 net. The VAT content is £40.

Registration is mandatory when your taxable turnover exceeds £90,000 in any 12-month period, or when you expect to pass this threshold within the next 30 days. You can also register voluntarily at any time.

Yes — if your business is VAT-registered, you can reclaim input VAT on eligible business expenses through your VAT return. You must keep valid VAT invoices as evidence. Some items, like business entertainment, are not eligible for VAT recovery.

Disclaimer

This calculator is provided for informational purposes only and does not constitute financial or tax advice. VAT rules can be complex — always consult a qualified accountant or check HMRC's official guidance for your specific situation.