UK VAT Calculator
Add VAT to a net price or extract the VAT from a gross amount at the UK standard 20%, reduced 5% or zero rate.
| Net | — |
|---|---|
| VAT | — |
| Gross | — |
In short
UK VAT is 20% standard, 5% reduced and 0% zero-rated. To add VAT multiply by 1.2; to remove it divide the gross by 1.2. Businesses must register once taxable turnover exceeds £90,000 in a rolling 12 months.
Who this is for: UK businesses and shoppers adding or removing VAT at 20%, 5% or 0%.
UK VAT rates
- Standard 20% — most goods and services.
- Reduced 5% — e.g. domestic fuel and power, children's car seats, some energy-saving materials.
- Zero 0% — e.g. most food, books, children's clothes. Still "VATable" (you can reclaim input VAT), unlike exempt supplies.
To remove VAT from a gross figure divide by 1.2 (not multiply by 0.8). The registration threshold is £90,000 of taxable turnover in a rolling 12 months.
See also: UK Corporation Tax Calculator.
Assumptions
- Rates offered are 20%, 5% and 0%.
- Removing VAT divides by (1 + rate).
Worked example
Net = 1,200 ÷ 1.2 = £1,000; VAT = £200.
Frequently asked questions
What's the difference between zero-rated and exempt?
Zero-rated sales are taxable at 0% and let you reclaim VAT on costs; exempt sales (insurance, most financial services, some education) don't.
Do I charge VAT to EU customers?
For most B2B services, no — reverse charge applies. Goods exported outside the UK are generally zero-rated. Rules differ by supply; check HMRC guidance.
Is the flat rate scheme the same?
No — under the flat rate scheme you still charge 20% but pay HMRC a lower fixed percentage of gross turnover; this calculator only handles standard accounting.
What is the UK VAT registration threshold?
£90,000 of taxable turnover in any rolling 12-month period; you can register voluntarily below it.
Are children's clothes and food really 0%?
Most food, children's clothing and footwear, books and newspapers are zero-rated; restaurant meals, confectionery and adult clothing are standard-rated.
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