United Kingdom · 2025/26
United Kingdom VAT calculator
Add VAT to a net price or strip it out of a VAT-inclusive price using the current UK rates. The standard rate is 20%, with a 5% reduced rate and a 0% zero rate for some goods and services. Choose the rate that applies to what you are selling or buying.
How it works
- To add VAT, multiply the net price by the rate. At 20%, £100 becomes £100 plus £20 VAT, so £120 in total.
- To remove VAT from a gross price, divide by 1 plus the rate. At 20%, divide by 1.20: a £120 gross price is £100 net plus £20 VAT.
- A quick check at the standard rate: the VAT in a gross price is the gross divided by 6.
Worked example
A £250 net invoice at the standard rate carries £50 VAT, making £300 to pay. Working backwards, £300 gross contains £50 VAT and £250 net.
Frequently asked questions
What is the standard UK VAT rate?+
The standard rate is 20% and applies to most goods and services. A 5% reduced rate and a 0% zero rate apply to specific categories.
What is the difference between zero-rated and exempt?+
Zero-rated goods are taxable at 0%, so a business can still reclaim VAT on related costs. Exempt items, such as most financial services and insurance, are outside VAT and do not allow reclaim.
When must a business register for VAT?+
Registration is required once VAT-taxable turnover passes £90,000 in any rolling 12 months, and is optional below that.
Are shop prices shown with VAT included?+
Prices to consumers normally include VAT. Business-to-business prices are often shown net, with VAT added on the invoice.
Sources
- VAT rates · GOV.UK
- How VAT works · GOV.UK
Last updated: 2025-04-06 · Applies to 2025/26
This is an estimate for general guidance, not financial, tax, legal or medical advice. Figures can change and individual circumstances vary. Always confirm with the official sources listed before making decisions.
- Rates current for the 2025/26 tax year.
- Choose the correct rate for the specific goods or services using HMRC guidance.
Reviewed by Vikas Dulgunde.