VAT Calculator UK
Add or remove VAT from any amount. Supports the standard 20% rate and custom rates for reduced and zero-rated items.
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Gross Amount
Frequently Asked Questions
The standard UK VAT rate is 20%, which applies to most goods and services. There's also a reduced rate of 5% for certain items like children's car seats, energy-saving materials, and some healthcare products. A zero rate (0%) applies to most food items, books, newspapers, children's clothes, and shoes. Some items are VAT-exempt rather than zero-rated.
To add VAT at the standard 20% rate, multiply the net price by 1.20. For example, £100 + VAT at 20% = £100 × 1.20 = £120 gross. For the reduced 5% rate, multiply by 1.05. For any custom rate, multiply by (1 + rate/100). This calculator handles all the math for you automatically.
To remove VAT at 20%, divide the gross price by 1.20. For example, £120 including VAT = £120 ÷ 1.20 = £100 net. The VAT amount would be £120 - £100 = £20. For a 5% rate, divide by 1.05. This is useful when you know the total price and want to find the original price before VAT.
VAT-exempt items include most financial services (banking, insurance, loans), healthcare services provided by health professionals, education and training, fundraising events by charities, and certain land and property transactions. Unlike zero-rated items, businesses that only supply exempt items cannot usually reclaim the VAT they pay on their business costs.
Zero-rated items have a VAT rate of 0%, so no VAT is charged on sales. However, businesses making zero-rated supplies can still reclaim VAT on their purchases. This includes most food, books, newspapers, and children's clothes. VAT-exempt items are outside the VAT system entirely - businesses dealing only in exempt supplies cannot register for VAT or reclaim input VAT.
You must register for VAT if your taxable turnover exceeds £90,000 in any 12-month period (threshold for 2024/25), or if you expect it to exceed this amount in the next 30 days. You can voluntarily register if your turnover is below the threshold, which may be beneficial if you have significant VAT on business expenses to reclaim. Once registered, you must charge VAT on taxable supplies.