Ccalcus.app
Work out take-home pay

VAT Calculator

Add or remove VAT from any price. Work out the net amount, the VAT and the gross total using the official UK rates.

VAT 20%, 5%, 0% Instant result 2026 HMRC rates

Work out the VAT

Type of calculation
GBP
VAT rate

Price including VAT

£120.00
20% VAT included
Net amount£100.00
VAT (20%)+£20.00
Gross total (incl. VAT)£120.00

Formula: 100 × 1.20 = £120.00

UK VAT rates 2026

Find out which VAT rate applies to each product and service

Standard rate 20%

Most goods and services

Applies to the majority of goods and services: electronics, clothing for adults, appliances, vehicles, alcohol, most professional services, takeaway hot food and restaurant meals.

To add VAT
Multiply by 1.20
Example: £100 × 1.20 = £120

Reduced rate 5%

Energy and home essentials

Domestic gas and electricity, children's car seats, mobility aids for older people, smoking-cessation products and the renovation of dwellings empty for two years or more.

To add VAT
Multiply by 1.05
Example: £100 × 1.05 = £105

Zero rate 0%

Food, books and more

Most food, books, newspapers and magazines, children's clothes and shoes, prescription medicines and residential energy-saving materials. It is taxable at 0%, so the seller can still reclaim input VAT.

To add VAT
Multiply by 1.00
Example: £100 × 1.00 = £100

Exempt

Outside VAT

Insurance, finance and credit, education and training, some healthcare and the letting of residential property. These supplies carry no VAT at all.

Important
Exempt is not the same as zero-rated. On exempt supplies the seller cannot reclaim the input VAT.

Frequently asked questions about VAT

We answer the most common questions about Value Added Tax

To add VAT, multiply the net amount by (1 + rate/100). Example: £100 + 20% VAT = £100 × 1.20 = £120. To remove VAT, divide the gross price by the same factor: £120 / 1.20 = £100.
Divide the gross price by (1 + rate/100). At the standard 20% rate, divide by 1.20. Example: £120 / 1.20 = £100 net. The VAT element is then £20. A quick shortcut for 20% is the "VAT fraction" of one-sixth: the VAT in a gross price is the price divided by 6.
The VAT fraction lets you pull the VAT straight out of a gross price. At 20% it is 1/6 (0.1667), so the VAT in £120 is 120 / 6 = £20. At the 5% rate the fraction is 1/21. This calculator applies the fraction for you whenever you choose "Remove VAT".
Most food sold for home consumption is zero-rated (0%). However, hot takeaway food, restaurant meals, confectionery, crisps, soft drinks and alcohol are charged at the standard 20% rate. The line between the two is one of the most disputed areas of UK VAT.
Yes. Clothing and footwear designed for young children are zero-rated, so there is no VAT to add. Adult clothing is charged at the standard 20% rate, even where the sizes overlap.
Both mean the customer pays no VAT, but zero-rated supplies are taxable at 0%, so the business can reclaim the VAT on its own purchases. Exempt supplies (such as insurance or education) are outside VAT, and the business cannot reclaim its input VAT.
You must register with HMRC once your VAT-taxable turnover goes over the registration threshold of £90,000 in any rolling 12-month period, or if you expect to pass it within the next 30 days. You can also register voluntarily below the threshold to reclaim input VAT.
Domestic gas and electricity are charged at the reduced rate of 5%. Supplies of fuel and power to businesses are normally charged at the standard 20% rate, though low-usage accounts can also qualify for the 5% reduced rate.

How to work out VAT in the UK: a complete 2026 guide

VAT (Value Added Tax) is an indirect tax on consumption that is added to most goods and services in the UK. As a shopper you pay VAT on almost every purchase. As a sole trader or company you have to charge, record and pay VAT to HMRC. This calculator lets you add or remove VAT from any price quickly and accurately.

There are three live VAT rates in the UK in 2026: the standard rate of 20% for the majority of goods and services, the reduced rate of 5% for domestic fuel and a handful of other supplies, and the zero rate of 0% for essentials such as most food, books and children's clothing.

Full table of UK VAT rates 2026

VAT rate Percentage Multiplier VAT fraction
Standard 20% × 1.20 1/6
Reduced 5% × 1.05 1/21
Zero 0% × 1.00 0
Exempt — n/a n/a

Worked example: a VAT invoice

This is how VAT should be shown, broken out, on an invoice:

Consultancy services £500.00
Net amount £500.00
VAT (20%) £100.00
TOTAL £600.00

VAT by sector and product

Home and energy

  • Domestic gas and electricity5%
  • Energy-saving materials (homes)0%
  • Mobility aids for older people5%
  • Letting of residential propertyExempt

Food and drink

  • Most groceries (cold, for home)0%
  • Restaurant meals and hot takeaway20%
  • Confectionery, crisps, soft drinks20%
  • Alcoholic drinks20%

Services

  • Consultancy, solicitors20%
  • Insurance and financeExempt
  • Education and trainingExempt
  • Healthcare (registered)Exempt

Children, books and health

  • Children's clothes and shoes0%
  • Books, newspapers, magazines0%
  • Children's car seats5%
  • Prescription medicines0%

VAT returns and registration

If you are a sole trader or company, you must register for VAT with HMRC once your VAT-taxable turnover exceeds £90,000 over a rolling 12-month period. Once registered, you charge VAT on your sales and submit a VAT Return, usually every quarter, through Making Tax Digital compatible software.

Item Detail Frequency Deadline
VAT Return Output VAT less input VAT Quarterly (standard) 1 month and 7 days after period end
Registration Turnover over £90,000 One-off Within 30 days of exceeding the threshold
Flat Rate Scheme Simplified single percentage Optional Turnover up to £150,000
Deregistration Turnover falls below threshold Optional When turnover drops under £88,000

Input VAT vs output VAT

Input VAT

The VAT you pay on your purchases as a business. You can reclaim it against the VAT you owe HMRC.

Example: you buy stock for £120 (£100 net + £20 VAT). That £20 is input VAT.

Output VAT

The VAT you charge on your sales to customers. You have to pay this over to HMRC.

Example: you sell a service for £600 (£500 net + £100 VAT). That £100 is output VAT.

Working out the VAT you owe or reclaim

VAT due to HMRC = output VAT − input VAT

Output VAT (sales)

£100

Input VAT (purchases)

−£20

Payable to HMRC

£80

Northern Ireland and the rest of the UK

VAT rates are the same across Great Britain (England, Scotland and Wales) and Northern Ireland: 20% standard, 5% reduced and 0% zero. The main difference is that, for goods, Northern Ireland follows special rules under the Windsor Framework for trade with the EU. For everyday pricing, the rates and the maths in this calculator apply right across the United Kingdom.

Note: This calculator is a guide only. For specific tax questions, check the official HMRC guidance or speak to an accountant. VAT rates and rules can change with each Budget.

Related calculators

Other handy tools for your everyday sums

Percentage Calculator

Work out the percentage of an amount, increases and discounts in one click.

Discount Calculator

Work out the final price after a discount and see how much you save.

Rule of Three Calculator

Solve any direct or inverse proportion instantly.

Days Between Dates

Work out how many days, weeks and months there are between two dates.