UK VAT Calculator
Work out UK VAT in either direction: add 20% to a net price, or find out how much VAT is hiding inside a total. Type an amount and the breakdown appears straight away.
UK VAT rates at a glance
The standard rate of 20% applies to most goods and services and has not moved since January 2011. The 5% reduced rate covers a short list that includes domestic gas and electricity, children's car seats, and some home insulation work. A 0% rate applies to most food, books and newspapers, and children's clothing, which is why a supermarket receipt often shows less VAT than you might expect.
To remove VAT from a gross price, divide by 1.2 rather than subtracting 20%. £120 divided by 1.2 is £100; £120 minus 20% would give £96, which is wrong because the 20% was charged on the net £100, not on the £120 total. HMRC publishes the full rate lists if you need to check a specific product category.
Frequently asked questions
How do I take 20% VAT off a price?
Divide the gross price by 1.2. A £120 total becomes £100 net with £20 of VAT. A handy shortcut: at the 20% rate, the VAT inside any gross price is exactly one sixth of it.
What is the current UK VAT rate?
The standard rate is 20% and has been since 4 January 2011. There is also a 5% reduced rate for things like home energy and children's car seats, and a 0% rate for most food, books, and children's clothes.
What is the difference between zero-rated and exempt?
Both mean no VAT on the sale, but they are treated differently behind the scenes. Zero-rated sales (most food, books, children's clothes) still count as taxable, so a business can reclaim the VAT on its own costs. Exempt sales (insurance, education, postage stamps) do not allow that reclaim.
When does a UK business have to register for VAT?
Once taxable turnover passes £90,000 in any rolling 12-month period (the threshold since April 2024). Below that, registration is voluntary; some businesses register anyway to reclaim VAT on their costs.
Do UK prices include VAT?
Consumer prices must be shown VAT-inclusive, so the shelf price is what you pay. Business-to-business quotes are usually net, with VAT added on the invoice.
Need a different country? The full VAT calculator covers 56 countries with their standard and reduced rates.