UK VAT Calculator
Add or remove 20% VAT instantly. Works for all UK VAT rates — standard (20%), reduced (5%) and zero (0%).
UK VAT Calculator — Everything You Need to Know
Value Added Tax (VAT) is a consumption tax charged on most goods and services sold in the United Kingdom. The standard rate is 20%, and it applies to the majority of products and services. Businesses registered for VAT must charge it on their sales, reclaim it on eligible purchases, and submit regular VAT returns to HMRC.
This free UK VAT calculator lets you add VAT to a net price or extract VAT from a gross (VAT-inclusive) price in seconds. It covers the standard 20% rate, the reduced 5% rate, and zero-rated supplies.
How to Use This VAT Calculator
- Choose whether you want to Add VAT (net → gross) or Remove VAT (gross → net).
- Enter the amount in pounds (£).
- Select the correct VAT rate — 20% standard, 5% reduced, or 0%.
- Click Calculate. Your net amount, VAT amount, and gross amount are shown instantly.
- Click Copy next to any figure to copy it to your clipboard.
Worked Examples
VAT +
Adding 20% VAT: £100 net × 1.20 = £120.00 gross. VAT amount = £20.00.
VAT −
Removing 20% VAT: £120 gross ÷ 1.20 = £100.00 net. VAT amount = £20.00.
UK VAT Rate History
| Date | Rate | Note |
|---|---|---|
| Apr 1991 | 17.5% | Standard rate raised from 15% |
| Dec 2008 | 15% | Temporary cut (financial crisis stimulus) |
| Jan 2010 | 17.5% | Restored to pre-crisis level |
| Jan 2011 | 20% | Raised by the Coalition Government — current standard rate |
| Jul 2020 | 5% | Temporary reduced rate for hospitality & tourism (COVID-19) |
| Oct 2021 | 12.5% | Hospitality transitional rate |
| Apr 2022 | 20% | Full standard rate restored for hospitality |
VAT Registration Threshold (2025)
You must register for VAT in the UK if your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period (threshold raised from £85,000 in April 2024). You can also register voluntarily below this threshold, which lets you reclaim VAT on business purchases.
Once registered, you will receive a VAT registration number (beginning with "GB") and must charge VAT on taxable supplies, issue VAT invoices, keep VAT records, and file VAT returns — typically quarterly — through HMRC's Making Tax Digital (MTD) system.
Filing VAT Returns in the UK
Most UK VAT-registered businesses file quarterly VAT returns via HMRC's Making Tax Digital (MTD) platform using compatible accounting software. The return is due one month and seven days after the end of each VAT period.
Annual VAT accounting is available for businesses with taxable turnover under £1.35 million, letting you make advance payments and file a single annual return. The VAT cash accounting scheme is available for turnover under £1.35 million, meaning you only account for VAT when you receive or make payments rather than when invoices are issued.
Frequently Asked Questions — UK VAT
- What is the current standard VAT rate in the UK?
- The standard UK VAT rate is 20%. It has been at this level since January 2011. A reduced rate of 5% applies to certain goods such as domestic fuel and power, children's car seats, and some energy-saving materials. Many items — including most food, children's clothing, and books — are zero-rated (0%).
- How do I add 20% VAT to a price?
- Multiply the net (ex-VAT) price by 1.20. For example: £250 × 1.20 = £300.00 gross. The VAT amount is £50.00. You can also use this calculator by entering £250, selecting 20%, and clicking Add VAT.
- How do I remove VAT from a price?
- Divide the gross (VAT-inclusive) price by 1.20. For example: £300 ÷ 1.20 = £250.00 net. The VAT amount is £50.00. Use the Remove VAT mode in this calculator to do this automatically.
- What goods and services are exempt from VAT in the UK?
- VAT-exempt supplies include insurance, finance and credit, education, health services, and postal services from Royal Mail. Exempt supplies differ from zero-rated supplies — businesses cannot reclaim VAT on costs associated with exempt activities. Zero-rated items (food, books, children's clothing) do count as taxable turnover and VAT can be reclaimed on related costs.
- Do I need to register for VAT?
- You must register for VAT if your taxable turnover in any rolling 12-month period exceeds £90,000 (from April 2024). Voluntary registration is available below this threshold and can be beneficial if you have significant VAT costs you wish to reclaim.
- What is a VAT invoice?
- A VAT invoice is a document that a VAT-registered business must issue when selling to another VAT-registered business. It must include: your VAT registration number, the invoice date, a description of the goods or services, the net amount, the VAT rate, the VAT amount, and the gross total. Simplified VAT invoices can be used for sales under £250.
- Can I reclaim VAT on business expenses?
- Yes. VAT-registered businesses can reclaim the input VAT they pay on most business purchases and expenses, as long as those purchases relate to taxable supplies. You cannot reclaim VAT on business entertainment, cars (unless used exclusively for business), or items used for private purposes.
- What is Making Tax Digital (MTD) for VAT?
- Making Tax Digital is HMRC's programme requiring VAT-registered businesses to keep digital VAT records and submit returns using MTD-compatible software. MTD for VAT has been mandatory for all VAT-registered businesses since November 2022, regardless of turnover.