UK VAT Calculator

UK standard VAT 20%, reduced 5%, zero 0%. Use Add to gross-up a net amount; Remove to extract net from gross.

UK VAT rates 2026/27:

Rate	Applies to
20% standard	Most goods and services
5% reduced	Domestic energy, children's car seats, some sanitary products
0% zero	Most food, books, children's clothes, public transport
Exempt	Insurance, financial services, education, healthcare

Note: zero-rated and exempt are different — zero-rated still appears on VAT returns.

How it works. Net × (1 + rate ÷ 100) = gross. Gross ÷ (1 + rate ÷ 100) = net.

Worked examples

£100 net + 20% VAT = £120 gross. VAT amount: £20.

£120 gross with 20% VAT removed = £100 net. VAT amount: £20.

£500 net + 5% reduced VAT (energy) = £525 gross. VAT: £25.

£1,200 gross with 20% VAT removed = £1,000 net.

Sources: HMRC VAT rates · retrieved 2026-05-12.

Popular calculators

Most-used calculators on this site — tap to open.

Standard VAT (20%)Add or remove the standard rate.Reduced rate (5%)Home energy, child car seats.Flat Rate SchemeWhen the flat rate scheme saves money.Margin SchemeSecond-hand dealer VAT calculation.Registration threshold£90,000 turnover trigger.Digital VAT (MOSS)EU digital sales reporting.

Guides & examples

Quick paths to the answer you need.

VAT formulasAdd VAT, remove VAT, flat-rate savings.Worked examplesTradesman invoice, retail price, EU sales.MethodologyHMRC sources and scheme rules.

Formulas & glossary

Plain-English definitions of the terms used across the calculators.

Standard rateUK VAT standard rate is 20%. Applies to most goods and services.

Reduced rate5% — applies to home energy, children's car seats, and some health products.

Zero rate0% VAT — applies to most food, books, children's clothes, public transport.

Net amountThe price before VAT is added. Net × 1.20 = Gross at the standard rate.

Gross amountThe price including VAT. Gross ÷ 1.20 = Net at the standard rate.

Flat-rate schemeSimplified VAT for small businesses — pay a fixed % of gross turnover instead of reclaiming input VAT.

Margin schemeCharges VAT only on the profit margin (used by second-hand dealers, antiques, art).

Registration thresholdUK businesses must register for VAT when turnover passes £90,000 in any rolling 12-month period.

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Frequently asked questions

How do I remove VAT from a gross figure?

Divide by 1 + (rate ÷ 100). For 20% VAT, divide by 1.20. £120 ÷ 1.20 = £100 net.

Can I round VAT to the nearest penny?

Yes — HMRC allows rounding per invoice line, but the VAT total must be exact to the line totals.

Are imports VAT-able?

Most are. Post-Brexit, EU goods over £135 are subject to UK VAT at import (paid by importer or via postponed VAT accounting). Goods under £135 from any country: VAT charged at point of sale by the seller.

Should I show net or gross prices?

B2C: gross (consumer-facing). B2B: net (since most business customers can reclaim VAT). Statutory price-marking law requires gross prices in retail.

Why is the 20% rate sometimes called 1.20?

Because 1.20 is the multiplier you use to gross-up a net price. £100 × 1.20 = £120. Equivalent to adding 20%.