What is the standard VAT rate in the UK?

The standard VAT rate in the UK is 20%. There is also a reduced rate of 5% for certain goods and services (such as home energy and child car seats), and a zero rate of 0% for essential items like most food and children's clothing.

How do I calculate VAT from a gross amount?

To find the VAT in a gross (VAT-inclusive) amount at the standard 20% rate, divide the total by 6. For example, if the total is £120, the VAT is £120 ÷ 6 = £20, and the net amount is £100.

When do I need to register for VAT?

You must register for VAT if your VAT-taxable turnover exceeds £90,000 in any 12-month rolling period (the 2025/26 threshold). You can also voluntarily register below this threshold.

VAT Calculator

Add or remove VAT at 20%, 5% or 0%. Calculate VAT-inclusive and VAT-exclusive amounts instantly.

Last updated: April 2026 · Source: GOV.UK — VAT rates

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Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

Value Added Tax (VAT) in the UK is charged at three rates: Standard (20%), Reduced (5%) and Zero (0%). The standard rate applies to most goods and services. The reduced rate covers items like home energy, child car seats and mobility aids. The zero rate applies to essentials including most food, children's clothing and books.

This calculator supports three modes: Add VAT (calculate the gross from a net amount), Remove VAT (find the net from a gross amount) and Reverse VAT (extract the VAT component from a VAT-inclusive total). The formula to remove 20% VAT from a gross price is: Net = Gross ÷ 1.20.

Businesses with VAT-taxable turnover above £90,000 (the 2025/26 threshold) must register for VAT. Below this threshold, voluntary registration is possible.

Example: Adding 20% VAT to £500

Net amount: £500.00
VAT at 20%: £500.00 × 0.20 = £100.00
Gross amount: £600.00
To reverse: £600 ÷ 1.20 = £500 net

Source: GOV.UK — VAT rates

Frequently Asked Questions

What is the standard VAT rate in the UK?: The standard VAT rate in the UK is 20%. There is also a reduced rate of 5% for certain goods and services (such as home energy and child car seats), and a zero rate of 0% for essential items like most food and children's clothing.
How do I calculate VAT from a gross amount?: To find the VAT in a gross (VAT-inclusive) amount at the standard 20% rate, divide the total by 6. For example, if the total is £120, the VAT is £120 ÷ 6 = £20, and the net amount is £100.
When do I need to register for VAT?: You must register for VAT if your VAT-taxable turnover exceeds £90,000 in any 12-month rolling period (the 2025/26 threshold). You can also voluntarily register below this threshold.