Mustafa Bilgic
Mustafa Bilgic · Independent UK Calculator Operator · Reviewed

Last updated: June 2026

UK VAT Calculator

Calculate VAT at 20% rate - add VAT to net amount or extract VAT from gross amount

About This VAT Calculator UK

This VAT Calculator UK helps you quickly work out VAT on any amount using the current UK rates set by HMRC for 2026/27. To add 20% VAT, multiply the net price by 1.20 (£100 × 1.20 = £120, i.e. £20 VAT); to remove VAT from a gross price, divide by 1.20 or divide by 6 to get the VAT element (£120 ÷ 6 = £20). Whether you need to add VAT to a net price or find the VAT included in a gross amount, this tool handles both directions instantly. All rates were re-verified against GOV.UK on 20 June 2026: the standard 20%, reduced 5% and zero 0% rates and the £90,000 VAT registration threshold (rolling 12-month taxable turnover) are unchanged for the 2026/27 tax year.

Why Use This VAT Calculator?

  • All UK VAT Rates: Supports the 20% standard rate, 5% reduced rate, and 0% zero-rated calculations
  • Add or Remove VAT: Handles both VAT-exclusive (add VAT) and VAT-inclusive (extract VAT) calculations
  • Built for Business: Ideal for invoicing, quoting, and VAT return preparation for businesses, freelancers, and sole traders
  • Current HMRC Rates: Based on official HMRC VAT rates for the 2026/27 tax year
  • Consumer-Friendly: Helps shoppers understand how much VAT is included in the price they pay

VAT Quick-Reference Tables (20% Standard Rate, 2026/27)

These ready-reckoner tables let you check common UK VAT amounts at a glance without typing anything. The first table shows how much 20% VAT to add to a net price; the second shows how to remove (reverse) VAT from a gross price that already includes it. All figures use the standard 20% rate confirmed on GOV.UK VAT Rates for the 2026/27 tax year.

Adding 20% VAT to a Net Price

Net price (ex-VAT) VAT at 20% Gross price (inc-VAT)
£10.00£2.00£12.00
£25.00£5.00£30.00
£50.00£10.00£60.00
£100.00£20.00£120.00
£250.00£50.00£300.00
£500.00£100.00£600.00
£1,000.00£200.00£1,200.00
£5,000.00£1,000.00£6,000.00

Formula: Gross = Net × 1.20, and VAT = Net × 0.20.

VAT Fractions by Rate

Worked Example: Reverse VAT on a £258 Invoice

You receive a supplier invoice for £258.00 including 20% VAT and need the net cost and VAT element for your bookkeeping:

  1. VAT element: £258.00 ÷ 6 = £43.00
  2. Net (ex-VAT) cost: £258.00 − £43.00 = £215.00 (or £258.00 ÷ 1.20 = £215.00)
  3. Check: £215.00 × 1.20 = £258.00 ✓

If you are VAT-registered, you record £215.00 as the cost and reclaim the £43.00 input VAT on your next return. A common mistake is to subtract 20% from the gross (£258 − 20% = £206.40), which is wrong — always divide by 6 or by 1.20 instead.

Need related figures? Use our Percentage Calculator for non-VAT percentages, the Import VAT Calculator for goods arriving from abroad, or the Markup Calculator to price your products before VAT is added.

UK VAT Rates and Registration 2026/27

UK Value Added Tax is a consumption tax on most goods and services. Businesses collect VAT on behalf of HMRC, adding it to prices. The rates below have been confirmed for the 2026/27 tax year (source: GOV.UK VAT Rates).

Detail Current Figure (2026/27)
Standard VAT rate20% (since 4 January 2011)
Reduced rate5% (domestic energy, child car seats, mobility aids)
Zero rate0% (most food, books, children's clothes, public transport)
Registration threshold£90,000 taxable turnover (rolling 12 months, from April 2024)
Deregistration threshold£88,000
VAT return frequencyQuarterly (1 month + 7 days after period end)
Making Tax DigitalMandatory for all VAT-registered businesses (since April 2022)

You must register for VAT within 30 days if your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period. Voluntary registration below this threshold lets you reclaim VAT on business costs, which can benefit B2B businesses with significant expenses. Zero-rated supplies (e.g. food, books) count toward the threshold; exempt supplies (e.g. insurance, residential rent) do not. Once registered, you charge VAT on sales, submit quarterly returns through MTD-compatible software, and pay HMRC the difference between output and input VAT.

The key difference between zero-rated and exempt is that zero-rated businesses can register for VAT and reclaim input VAT on their costs, while businesses making only exempt supplies cannot. This matters when choosing whether to register voluntarily.

Frequently Asked Questions

To add 20% VAT to a net price, multiply the net amount by 1.20. For example, £100 × 1.20 = £120, which is £100 net plus £20 VAT. To work out just the VAT, multiply the net price by 0.20 (£100 × 0.20 = £20). This VAT Calculator UK does it instantly when you choose 'Add VAT to Net Amount' at the 20% standard rate.

To remove VAT from a gross (VAT-inclusive) price, divide the gross price by 1.20 to get the net price. For example, £120 ÷ 1.20 = £100 net. To find the VAT element directly, divide the gross price by 6, because the 20% VAT fraction is 1/6 (£120 ÷ 6 = £20). Do not simply subtract 20% from the gross price — that produces the wrong figure. For the 5% reduced rate, divide by 1.05 (or the VAT fraction 1/21).

The current UK standard VAT rate in 2026/27 is 20%, which has been in effect since 4 January 2011. The reduced rate is 5% (applying to domestic energy, children's car seats, and smoking cessation products), and the zero rate is 0% (applying to most food, children's clothing, books, and public transport). There is no change to any UK VAT rates for the 2026/27 tax year. The VAT registration threshold remains at £90,000 (set in April 2024). For the latest official rates, visit gov.uk/vat-rates.

Net price is the base price before VAT (also called ex-VAT). VAT is the Value Added Tax charged by HMRC (20% standard rate). Gross price is the final price including VAT (also called inc-VAT). Formula: Gross = Net + VAT, or Gross = Net × 1.20. Example: Net £50 + VAT £10 (20%) = Gross £60. B2B invoices often show net prices separately, while retail prices displayed to consumers must include VAT (gross prices). When registered for VAT, businesses reclaim VAT on purchases but charge it on sales.

You must register for VAT if your VAT taxable turnover exceeds £90,000 in any 12-month period (threshold effective from April 2024, unchanged for 2026/27). You can voluntarily register below this threshold to reclaim VAT on business expenses. Register within 30 days of exceeding the threshold. Once registered, you must charge VAT on all sales, submit VAT returns quarterly or monthly, and pay HMRC the difference between VAT charged (output VAT) and VAT paid (input VAT). You can deregister if turnover drops below £88,000.

5% reduced VAT rate applies to: domestic fuel/power (gas/electricity), children's car seats, smoking cessation products, mobility aids for elderly, energy-saving materials (insulation). 0% zero-rated items (VAT registered but charge 0%): most food (not hot takeaways/restaurant meals), books/newspapers/magazines, children's clothes/footwear, prescription medicines, public transport. VAT-exempt items (no VAT charged, can't reclaim VAT): rent on residential properties, NHS medical services, education/training, insurance, postal services. Zero-rated differs from exempt: zero-rated businesses can reclaim input VAT, exempt cannot.

The VAT fraction is a shortcut to calculate the VAT content of a VAT-inclusive (gross) price. For the 20% standard rate, the VAT fraction is 1/6. So if a gross price is £120, the VAT is £120 ÷ 6 = £20. For the 5% reduced rate, the VAT fraction is 1/21. This method is used by businesses to extract the output VAT from gross sales figures without needing to know the original net price.

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Independently Maintained — This VAT Calculator UK is maintained by independent operator Mustafa Bilgic and updated with the latest UK VAT rates and thresholds published by HMRC and GOV.UK. Last verified: 20 June 2026 against GOV.UK VAT rates.

Official Sources & References

Data verified against official UK government sources. Last checked 20 June 2026.

Important Disclaimer

This VAT calculator provides estimates for general guidance only. VAT rules are complex with many exceptions and special cases. Always verify your specific VAT treatment with HMRC guidance or a qualified tax advisor. We do not provide regulated tax advice.