Global VAT CalcUK VAT Calculator
Last reviewed 16 October 2026
Add or remove 20% UK VAT — with the 5% and 0% rates set out, and the registration and filing basics in plain English.
UK VAT rates, from 20% down
| Rate | Applies to (examples) |
|---|---|
| Standard — 20% | Most goods and services: electronics, adult clothing, professional services, restaurant meals, hot takeaway food. |
| Reduced — 5% | Domestic fuel and power, children's car seats, energy-saving materials, some residential conversions. |
| Zero — 0% | Most food, children's clothes, books and newspapers, public transport fares, exports. |
Zero-rated is not the same as exempt — zero-rated sales still count as taxable turnover, and the related input VAT can be reclaimed. The glossary spells out the difference.
Adding and removing 20% VAT
Adding: £100 net → £120 gross, with £20 of VAT. Removing: £120 gross → £100 net, with the same £20 inside. For a mid-size figure: £2,000 net → £2,400 gross; working back, £2,400 ÷ 1.2 = £2,000.
One mental shortcut that prevents most invoice disputes: at 20%, the VAT is a sixth of the gross total (16.67%), not a fifth. Divide any VAT-inclusive price by 6 and you have the VAT — £2,400 ÷ 6 = £400. Accountants call this the VAT fraction, and at the 5% rate it becomes 1/21.
Quick reference — common amounts at 20%
| Net (excl. VAT) | Gross (incl. VAT) | VAT |
|---|---|---|
| £45.00 | £54.00 | £9.00 |
| £59.00 | £70.80 | £11.80 |
| £100.00 | £120.00 | £20.00 |
| £250.00 | £300.00 | £50.00 |
| £500.00 | £600.00 | £100.00 |
| £995.00 | £1,194.00 | £199.00 |
| £2,500.00 | £3,000.00 | £500.00 |
Going the other way from a gross total? The reverse VAT calculator handles it, and the examples page has reference figures for both directions.
Registration and filing basics
- Registration threshold: £90,000 of taxable turnover over any rolling 12 months — frozen since April 2024. Below it, registration is optional, and can still be worth it if you sell zero-rated goods or want to reclaim input VAT.
- Filing: most VAT-registered businesses file quarterly through HMRC's Making Tax Digital service with compatible software; returns and payment are due one month and seven days after the period end.
- Records: keep VAT records for at least 6 years, including every sales and purchase invoice.
- Invoices: a valid VAT invoice shows your VAT number, the net amount, the rate and the VAT separately — mixed-rate jobs need each line at its own rate.
Notes for UK trade
Selling to EU businesses? Cross-border B2B services usually fall under the reverse charge, so you invoice without VAT. Imports from outside the UK attract import VAT (often reclaimable if you're registered), and exports are generally zero-rated — keep the shipment evidence. Construction businesses should know the domestic reverse charge for building services, which moves VAT accounting down the supply chain.
If you're weighing up the flat rate scheme, run both sets of numbers: the flat rate saves paperwork but gives up most input VAT reclaim.
Related tools
Reverse VAT calculator · Flat rate scheme calculator · Net to gross · VAT guide for small businesses
UK VAT questions
What is the UK VAT rate?
The standard rate is 20%. A reduced rate of 5% applies to a short list including domestic fuel, and a zero rate applies to most food, children's clothes, books and exports.
When must I register for VAT?
When your taxable turnover over any rolling 12 months exceeds £90,000 — or when you expect it to in the next 30 days alone. The threshold has been frozen since April 2024.
How do I remove VAT from a UK price?
Divide the gross amount by 1.2 at 20%. £120 gross becomes £100 net with £20 VAT. Never subtract 20% from the gross — that gives £96, which is wrong.
What must a valid VAT invoice show?
Your VAT number, a unique invoice number, the date, the customer's details, what was supplied, and the net, rate and VAT amounts — each rate shown separately on mixed-rate jobs.
Can I reclaim input VAT on everything?
Only on purchases genuinely used for your VAT-taxable business. There are exceptions — cars, business entertaining and some other categories are typically blocked.
Is the flat rate scheme worth it for a small UK business?
Sometimes: it saves admin but forgoes most input VAT reclaim, and the 16.5% limited cost trader rate can erase the benefit. Compare both before joining.
Checked against HMRC guidance on 16 October 2026 · Methodology · Editorial standards · Report an error