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🇬🇧United Kingdom

UK VAT Calculator

Calculate UK VAT at 20%, add or remove VAT from any price.

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Results

VAT Amount£200
Price Including VAT£1,200
Price Excluding VAT£833.33
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What is UK VAT?

VAT (Value Added Tax) is a consumption tax added to goods and services in the United Kingdom. The standard UK VAT rate is 20%, with reduced rates of 5% (home energy, child car seats) and 0% (most food, children's clothing, books, newspapers).

Businesses with taxable turnover above £90,000 (2025/26 threshold) must register for VAT, charge it on sales, and submit quarterly VAT returns to HMRC. VAT-registered businesses can reclaim VAT paid on business purchases (input tax).

Unlike US sales tax which is added at the point of sale, UK prices displayed to consumers almost always include VAT. Business-to-business (B2B) prices are typically quoted excluding VAT. This calculator helps you convert between VAT-inclusive and VAT-exclusive prices.

VAT was introduced in the UK in 1973 when Britain joined the European Economic Community. After Brexit, the UK maintains its own VAT system independent of EU rules, though the standard rate has remained at 20% since 2011.

Formula

Adding VAT: VAT Amount = Net Price × VAT Rate / 100 Gross Price = Net Price + VAT Amount

Removing VAT: Net Price = Gross Price / (1 + VAT Rate / 100) VAT Amount = Gross Price − Net Price

Example — £1,000 + 20% VAT: VAT = £1,000 × 20/100 = £200 Gross = £1,200

Reverse: £1,200 including VAT: Net = £1,200 / 1.20 = £1,000 VAT = £200

UK VAT Rates: - Standard: 20% (most goods and services) - Reduced: 5% (home energy, sanitary products, child car seats) - Zero: 0% (most food, children's clothing, books, public transport) - Exempt: Financial services, insurance, education, health

How to use this UK VAT Calculator?

1. Enter the amount (either net/ex-VAT or gross/inc-VAT price). 2. Select the VAT rate (20% standard, 5% reduced, or custom). 3. See the VAT amount, price with VAT, and price without VAT.

For invoicing: enter the net price to calculate VAT and gross total. For receipts: the 'Price Excluding VAT' field shows the net price from a VAT-inclusive amount.

Frequently asked questions

What is the current UK VAT rate?
The standard UK VAT rate is 20%. Reduced rate is 5% (energy, sanitary products). Zero rate is 0% (most food, children's clothes, books). These rates have been stable since 2011.
When do I need to register for VAT?
You must register when your taxable turnover exceeds £90,000 in any 12-month period (2025/26 threshold). You can voluntarily register below this threshold to reclaim input VAT, which may be beneficial if you sell to VAT-registered businesses.
Is there VAT on food in the UK?
Most food is zero-rated (0% VAT): bread, milk, fruit, vegetables, meat, fish. However, restaurant meals, takeaway hot food, confectionery, crisps, soft drinks, ice cream, and alcoholic drinks are standard-rated (20%).
How to calculate VAT quickly in your head?
For 20% VAT: divide the net price by 5. £100 + VAT = £100 + £20 = £120. To remove VAT from an inclusive price: divide by 6 for the VAT amount. £120 ÷ 6 = £20 VAT, so net = £100.
What is the flat rate VAT scheme?
Small businesses (under £150,000 turnover) can use the Flat Rate Scheme — pay a fixed percentage of gross turnover (varies by industry, 4-16.5%) instead of calculating actual input/output VAT. Simpler accounting but you cannot reclaim input VAT.
Is VAT charged on exports?
Exports to non-UK customers are zero-rated (0% VAT). This applies to both goods and services exported outside the UK. You still need to register for VAT and file returns, but you charge 0% on qualifying exports.
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