VAT Calculator
UK VAT Made Simple
Free Utility Tool
UK VAT Calculator: Add or Remove VAT Instantly
Work out VAT at 20%, 5%, 0% or any custom rate. Free, instant and nothing is stored.
20%
Standard rate, unchanged since 2011
£90,000
2026/27 VAT registration threshold
0
Data stored: everything runs in your browser
Enter the price excluding VAT and calculate the total with VAT included
Standard Rate
17.5%
Reduced Rate
5%
Zero Rate
0%
Add Custom Rate
No items added yet. Click "Add Item" to get started.
Tutorial
How to use this VAT calculator
Process absolute figures and handle tax distributions seamlessly across complex calculations.
1. Choose your mode
Select Add VAT if you have a net price and need the total, or Remove VAT if you have a gross price and need the VAT element backed out.
2. Enter your amounts
Add one or more items with an optional description for each.
3. Pick the rate
Choose 20%, 5%, 0% or set a custom rate for special schemes or non-UK calculations.
4. Read the results
The calculator shows the net amount, the VAT amount and the gross total for each item and overall. Copy everything to your clipboard with one click.
What is VAT?
VAT (Value Added Tax) is a consumption tax charged on most goods and services sold in the United Kingdom. It was introduced in 1973 and is administered by HM Revenue and Customs (HMRC). The standard rate is 20%.
VAT registered businesses charge VAT on their sales (output tax) and can usually reclaim the VAT they pay on business purchases (input tax). The difference between the two is paid to, or reclaimed from, HMRC through a VAT return. The cost of VAT is ultimately carried by the end consumer, which is why business-to-business prices are often quoted excluding VAT while consumer prices must include it.
UK VAT rates in 2026
The UK has three rates of VAT: the standard rate of 20%, the reduced rate of 5% and the zero rate of 0%. The standard rate has been 20% since 4 January 2011 and applies to most goods and services. Some items, such as insurance and postage stamps, are exempt rather than zero rated, which is an important distinction for businesses.
| Rate | VAT | Applies to | Example on £100 |
|---|---|---|---|
| Standard | 20% | Most goods and services: electronics, adult clothing, professional services, alcohol, hot takeaway food | £100 + VAT = £120.00 |
| Reduced | 5% | Domestic gas and electricity, children's car seats, mobility aids for older people, certain residential conversions | £100 + VAT = £105.00 |
| Zero | 0% | Most food, books and newspapers, children's clothing and footwear, exports of goods outside the UK | £100 + VAT = £100.00 |
| Exempt | n/a | Insurance, postage stamps, education, health services, most financial services. Not the same as zero rated | No VAT charged |
Zero rated vs exempt note: Zero rated and exempt are not the same thing. Zero rated sales are still taxable supplies: they count towards the £90,000 registration threshold and the business can reclaim VAT on related costs. Exempt sales sit outside the VAT system entirely, so they do not count towards the threshold and VAT on related costs usually cannot be reclaimed.
How to calculate VAT
To add VAT to a price, multiply the net amount by 1.20 for the 20% rate (or by 1.05 for the 5% rate). To remove VAT from a price, divide the gross amount by 1.20 (or by 1.05). The calculator above applies these formulas automatically, but they are useful to know for quick checks.
| Calculation | Formula | Example at 20% |
|---|---|---|
| Add VAT | Net x (1 + rate / 100) = Gross | £250 x 1.20 = £300.00 |
| Remove VAT | Gross / (1 + rate / 100) = Net | £300 / 1.20 = £250.00 |
| VAT amount (adding) | Net x (rate / 100) = VAT | £250 x 0.20 = £50.00 |
| VAT inside a gross price | Gross / 6 at 20% (the VAT fraction) | £300 / 6 = £50.00 |
| VAT inside a gross price | Gross / 21 at 5% | £105 / 21 = £5.00 |
When do you need to register for VAT?
You must register for VAT with HMRC if your taxable turnover exceeds £90,000 in any rolling 12 month period, or if you expect it to exceed £90,000 in the next 30 days alone. The £90,000 threshold has applied since 1 April 2024, when it was raised from £85,000, and is unchanged for the 2026/27 tax year. You have 30 days to register after crossing it.
The threshold is measured on a rolling 12 month basis, not the tax year, so it can be crossed in any month. Taxable turnover includes standard, reduced and zero rated sales, but not exempt sales. The deregistration threshold is £88,000.
Businesses below £90,000 can register voluntarily. This is often worthwhile for B2B businesses, because it allows them to reclaim VAT on purchases while their business customers can reclaim the VAT charged to them.
How often are VAT returns submitted?
Most VAT registered businesses submit VAT returns to HMRC every quarter. The return and any payment are 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. Some businesses use the Annual Accounting Scheme (one return per year) or file monthly.
All VAT registered businesses must follow Making Tax Digital (MTD) for VAT, which has been mandatory since April 2022. This means keeping digital VAT records and submitting returns through MTD compatible software rather than typing figures into the HMRC website.
Important Guidance Note
VAT rates and thresholds can change at any UK Budget statement. Always double-check transactions against the official HMRC gov.uk gateway before finalizing commercial accounting or tax filing returns.
Help Desk
Frequently Asked Questions
Find self-contained, expert-verified answers to common questions about UK VAT calculations and rules for 2026.
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