UK VAT Calculator
Add VAT to a net price or extract the VAT amount from a gross (VAT-inclusive) price. Pick from the standard 20%, reduced 5%, or zero rate. Useful for UK businesses, freelancers, and anyone double-checking an invoice.
How is this calculated?
Adding VAT is straightforward: gross = net × (1 + rate). Removing VAT is the inverse: net = gross ÷ (1 + rate). The standard rate has been 20% since January 2011. The reduced rate (5%) applies to a small list including domestic fuel, certain energy-saving installations, and children’s car seats. Zero-rated supplies (most food, books, children’s clothes, public transport) are taxable but at 0% — different from VAT-exempt items, which are entirely outside the VAT system.
Frequently Asked Questions
When did UK VAT become 20%?
The standard rate rose from 17.5% to 20% on 4 January 2011 in the wake of the global financial crisis. It has stayed at 20% since.
What's the difference between zero-rated and VAT-exempt?
Zero-rated supplies (e.g. most food, books, children's clothes) are within the VAT system but taxed at 0% — businesses can still reclaim input VAT on related purchases. Exempt supplies (e.g. financial services, education, postage stamps) are outside the VAT system entirely; businesses cannot reclaim input VAT on related costs.
Do I need to register for VAT?
You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period (threshold raised from £85,000 on 1 April 2024). You can register voluntarily below that to reclaim input VAT, but you'll then have to charge VAT on your sales.
How does the Flat Rate Scheme work?
Small businesses (turnover ≤ £150,000) can opt into the Flat Rate Scheme: they charge customers the normal 20% but pay HMRC a flat percentage of gross turnover (varies by sector, typically 4-14.5%). Simpler bookkeeping but no input VAT recovery on most purchases.
What is the reverse charge?
For certain B2B supplies (notably construction services in the UK, plus most cross-border services from the EU), the customer accounts for the VAT instead of the supplier. The supplier issues a zero-VAT invoice with a note about reverse-charge treatment. Outside the scope of this simple calculator.
Last updated: May 2026 · Rates sourced from HMRC