UK VAT Calculator 2026 — 20%, 5%, 0% Rates | Add & Reverse

Standard 20% · Reduced 5% (energy, fuel) · Zero-rated food & children's clothes

The UK standard VAT rate is 20%, introduced in January 2011. A reduced 5% rate applies to domestic energy and fuel, children's car seats, and some health products. Zero-rated (0%) goods include most food, children's clothing, books, newspapers, and public transport. Use this calculator to add 20% VAT to a price or remove VAT from a VAT-inclusive total.

UK VAT Rates — 2026

The United Kingdom has three VAT rates. The standard 20% rate applies to most goods and services. The reduced 5% rate covers domestic energy (gas and electricity), children's car seats, women's sanitary products, and some health and mobility products. Zero-rated goods — technically taxed at 0% but still 'VAT-rated' — include most food, children's clothing, books, newspapers, prescription drugs, and public transport tickets. VAT-exempt categories (not subject to VAT at all) include financial services, education, healthcare, and insurance.

How to Add VAT in the UK

To add 20% UK VAT to a net (ex-VAT) price: multiply by 1.20. A net price of £500 becomes £600 including VAT. The VAT amount is £100. Formula: VAT amount = net price × 0.20; gross price = net price × 1.20. For the 5% reduced rate: multiply by 1.05. For zero-rated: no calculation needed (0% VAT).

How to Remove VAT from a UK Price (Reverse VAT)

To remove 20% VAT from a gross (VAT-inclusive) price: divide by 1.20. A gross price of £240 has a net price of £200 (£240 ÷ 1.20). The VAT element is £40. Formula: net price = gross price ÷ 1.20; VAT amount = gross price − net price. For the 5% reduced rate: divide by 1.05. This reverse VAT calculation is useful for expense claims, bookkeeping, and checking invoices.

UK VAT Registration

UK businesses must register for VAT once their taxable turnover exceeds £90,000 in any rolling 12-month period. Registration can be done voluntarily at any time below this threshold — useful for reclaiming input VAT. VAT returns are normally submitted quarterly via Making Tax Digital (MTD) compliant accounting software. Businesses can also apply for the Flat Rate Scheme (FRS) if their taxable turnover is under £150,000.

UK VAT After Brexit

Since leaving the EU on 1 January 2021, the UK has operated its own VAT system independent of EU VAT rules. Imports from the EU are now subject to the same VAT treatment as non-EU imports. Northern Ireland has a separate protocol that means it continues to follow EU VAT rules for goods (but not services). UK VAT numbers are prefixed with 'GB' rather than the EU country code.

United Kingdom VAT — frequently asked questions

What is the UK VAT rate in 2026?

The UK standard VAT rate is 20%. A reduced 5% rate applies to domestic energy, children's car seats, and some health products. Zero-rated goods include most food, children's clothing, books, and public transport.

How do I remove VAT from a price in the UK?

To remove 20% VAT from a VAT-inclusive price, divide by 1.20. For example: £120 ÷ 1.20 = £100 (the ex-VAT price). Or use our reverse VAT calculator above.

How do I add 20% VAT to a price?

To add 20% VAT: multiply the ex-VAT price by 1.20. For example: £100 × 1.20 = £120 (the VAT-inclusive price). You can also use our calculator above.

What items are zero-rated for VAT in the UK?

Zero-rated (0% VAT) goods in the UK include most food for home consumption, children's clothing and footwear (under 14), books and newspapers, prescription medicines, public transport, and new residential properties.

What is the UK VAT registration threshold?

UK businesses must register for VAT when their taxable turnover exceeds £90,000 in any 12-month period (as of 2024/25). VAT registration can be done voluntarily below this threshold.

UK VAT Calculator 2026 — Add or Remove VAT