UK VAT Calculator
Add VAT to a net price or extract VAT from a gross price in seconds. Use the current UK VAT rates: 20 percent standard, 5 percent reduced, or 0 percent zero-rated, plus a custom rate for special cases. Built for UK freelancers, small businesses, and shoppers who want the exact VAT split before invoicing or checkout.
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Advanced options
The defaults below are already applied to your result. Open this section only to change them.
Flat-rate scheme note: If you use the VAT flat-rate scheme, you pay HMRC a fixed percentage of your gross turnover instead of reclaiming VAT on purchases. Flat rates vary by trade, so this calculator does not present one single flat rate as universal. Treat any flat-rate figure as a guide and confirm your trade rate with HMRC.
Multiple lines note: If an invoice mixes rates (for example standard-rated goods and zero-rated food items), calculate each line separately at its own rate and add the VAT amounts together.
Reverse-charge note: For certain construction services under the domestic reverse charge, the customer accounts for the VAT instead of the supplier charging it. If reverse charge applies, do not add VAT on the invoice in the usual way.
Key takeaways
- £100 net plus 20% VAT equals £120 gross, with £20 VAT. That is the standard-rate worked example most UK invoices use.
- £120 gross including 20% VAT contains £100 net and £20 VAT. Extracting VAT is division by 1.20, not subtraction of 20% from £120 (which would wrongly give £96).
- £100 net at the 5% reduced rate equals £105 gross, with £5 VAT. The reduced rate covers items such as domestic energy and some energy-saving materials.
- Zero-rated does not mean exempt: zero-rated sales still count toward VAT registration, while exempt sales do not carry VAT at all.
Contents
- Complete guide: UK VAT rates and how VAT works
- Worked examples
- How it works
- Frequently asked questions
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In pounds: the three rates, the £90,000 registration threshold, adding and removing VAT, zero-rated versus exempt, and the flat-rate scheme
Complete guide: UK VAT rates and how VAT works
Value Added Tax (VAT) is a tax on most goods and services sold in the UK, collected by VAT-registered businesses on behalf of HMRC. The standard rate is 20%. A 5% reduced rate applies to a narrow list of items such as domestic fuel and power and certain energy-saving installations. Some goods and services are zero-rated (0%), including most food, books, newspapers, and children’s clothes. Zero-rated is not the same as exempt: exempt items, such as most financial and insurance services, carry no VAT and cannot be used to reclaim input VAT.
Current UK VAT rates
| Rate | Applies to | Example |
|---|---|---|
| 20% standard | Most goods and services | Electronics, restaurant meals, standard services |
| 5% reduced | Domestic energy and listed items | Home electricity and gas, energy-saving materials |
| 0% zero-rated | Listed essentials | Most food, books, children’s clothing |
| Exempt | No VAT charged | Most insurance, finance, and education services |
Adding VAT versus extracting VAT
Adding VAT: multiply the net amount by the rate. Gross equals net plus VAT. Extracting VAT: divide the gross amount by 1 plus the rate to get the net, then subtract the net from the gross to get the VAT. The common mistake is subtracting 20% from the gross price, which understates the net amount.
Worked examples
| Case | Net | VAT | Gross |
|---|---|---|---|
| £100 net at 20% | £100.00 | £20.00 | £120.00 |
| £120 gross at 20% | £100.00 | £20.00 | £120.00 |
| £100 net at 5% | £100.00 | £5.00 | £105.00 |
| £210 gross at 5% | £200.00 | £10.00 | £210.00 |
| £250 net at 0% | £250.00 | £0.00 | £250.00 |
How it works
- Enter the amount in pounds, then choose whether it is a net amount (VAT to add) or a gross amount (VAT to extract).
- Pick the VAT rate: 20% standard, 5% reduced, 0% zero-rated, or a custom rate for special cases.
- Read the split: the calculator shows the net amount, the VAT amount, and the gross amount, rounded to pounds and pence by default.
New guide: UK VAT Explained: Rates, Registration, and How VAT Is Calculated
Value Added Tax is the tax on most goods and services sold in the United Kingdom, charged at each stage of the supply chain and ultimately paid by the final consumer.
Three rates: standard 20% on most goods and services, reduced 5% on a short list including domestic fuel and power and children’s car seats, and zero rate 0% on most food, children’s clothing, books, and other specified items. Exempt supplies — financial services, insurance, education, health — sit outside VAT entirely and are different from zero-rated. The full guide, UK VAT Explained: Rates, Registration, and How VAT Is Calculated, works through the method in detail, with worked examples and the cases that most often go wrong.
Frequently asked questions
What is the standard UK VAT rate?
The standard UK VAT rate is 20%. Most goods and services fall under it. For example, a £100 net item at 20% costs £120 gross, with £20 VAT.
How do I extract VAT from a gross price?
Divide the gross price by 1.20 for the standard rate. A £120 gross price gives £100 net, so the VAT is £20. Do not subtract 20% from £120, which would wrongly give £96 net.
What is the 5% reduced VAT rate for?
The 5% reduced rate applies to a narrow list, including domestic fuel and power and certain energy-saving materials installed in homes. A £100 net bill at 5% totals £105 gross, with £5 VAT.
What is the difference between zero-rated and exempt?
Zero-rated sales carry VAT at 0% and still count toward the VAT registration threshold. Exempt sales carry no VAT at all, and businesses making only exempt supplies generally cannot register for VAT or reclaim input VAT.
Do I need to register for VAT?
As a general guide, a business must register for VAT once its taxable turnover exceeds the HMRC threshold (check the current threshold on the HMRC website, as it can change). Registration is voluntary below the threshold.
Can I use this calculator for flat-rate scheme VAT?
Only as a guide. Under the flat-rate scheme you pay HMRC a fixed percentage of gross turnover, and the percentage varies by trade. Confirm your trade rate with HMRC rather than relying on a single universal figure.
What are the UK VAT rates?
Standard 20% on most goods and services, reduced 5% on a short list including domestic fuel and power and children’s car seats, and zero rate 0% on most food, children’s clothing, books, and other specified items. Exempt supplies, such as financial services and education, sit outside VAT entirely and are different from zero-rated.
How do I remove VAT from a price?
Divide the gross price by 1.20 at the standard rate: £120 ÷ 1.20 = £100 net, with £20 of VAT. At the reduced rate, divide by 1.05. Never divide by 20: that gives £6 on £120, which is not the VAT.
What is the VAT flat-rate scheme?
A simplification for businesses with expected turnover of £150,000 or less: charge VAT as normal, pay HMRC a fixed percentage of gross turnover set by trade, and keep the difference instead of reclaiming input VAT separately. It saves record-keeping but can cost money where input VAT is high; compare it with the standard scheme on your own figures.
Disclaimer: This calculator provides general information only and is not tax advice. VAT rules, rates, and thresholds can change. For decisions about registration, the flat-rate scheme, or reverse charge, check HMRC guidance or consult a qualified tax adviser.
Sources: HMRC guidance on VAT rates and VAT registration. Rates shown (20%, 5%, 0%) reflect the standard UK VAT structure in force at the time of writing.