Add or remove VAT at current UK rates instantly
Example: Product costs £100 before VAT
Calculation: £100 × 1.20 = £120
Result: £20 VAT, £120 total
Example: Invoice total is £120 including VAT
Calculation: £120 ÷ 1.20 = £100
Result: £100 net, £20 VAT
Example: Energy bill £100 before VAT
Calculation: £100 × 1.05 = £105
Result: £5 VAT, £105 total
Example: Books, children's clothes
Calculation: £100 × 1.00 = £100
Result: £0 VAT, £100 total
The standard VAT rate applies to most goods and services in the UK. This includes electronics, clothing, restaurant meals, and professional services.
| Item | Rate |
|---|---|
| Most goods & services | 20% |
| Luxury items | 20% |
| Digital services | 20% |
The reduced rate applies to specific items like domestic fuel, certain building work, and some tourist attractions.
| Item | Rate |
|---|---|
| Domestic fuel & power | 5% |
| Smoking cessation products | 5% |
| Children's car seats | 5% |
Zero-rated items are technically subject to VAT but at 0%. Businesses can still reclaim VAT on these supplies.
| Item | Rate |
|---|---|
| Most food items | 0% |
| Books & newspapers | 0% |
| Children's clothes | 0% |
Businesses must register for VAT if their taxable turnover exceeds £90,000 in a 12-month period (2024/25 threshold).