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VAT Calculator UK

Add VAT to a net amount or remove VAT from a gross amount. Free and instant calculations for UK businesses.

VAT Calculator

Add or remove VAT at UK rates

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UK VAT Rates Explained

Value Added Tax (VAT) is a consumption tax added to most goods and services sold in the UK. As of 2026, there are three main VAT rates:

20%
Standard Rate

Most goods and services

5%
Reduced Rate

Home energy, car seats

0%
Zero Rate

Food, children's clothing

How to Calculate VAT

Adding VAT (Net to Gross)

To add VAT to a price, multiply by 1 + (VAT rate / 100):

Gross = Net × 1.20 (for 20% VAT)

Example: A net price of £100 with 20% VAT:

£100 × 1.20 = £120 (including £20 VAT)

Removing VAT (Gross to Net)

To find the net amount from a VAT-inclusive price, divide by 1 + (VAT rate / 100):

Net = Gross ÷ 1.20 (for 20% VAT)

Example: A gross price of £120 with 20% VAT:

£120 ÷ 1.20 = £100 (net), with £20 VAT

VAT Registration Threshold

As of 2026, you must register for VAT if your VAT taxable turnover exceeds £90,000 in any rolling 12-month period. You can also register voluntarily below this threshold.

What VAT Rate Applies?

RateExamples
Standard (20%)Most goods and services, professional services, electronics, clothing (adults), restaurant meals
Reduced (5%)Domestic fuel/power, children's car seats, mobility aids, sanitary products
Zero (0%)Most food, books, newspapers, children's clothing, public transport
ExemptInsurance, finance, education, health services

Automatic VAT Calculation

Experi automatically calculates VAT on your invoices. Set your VAT rate once and every invoice is correct—including mixed VAT rates on a single invoice.

Frequently Asked Questions

What is the standard VAT rate in the UK?

The standard VAT rate in the UK is 20%. This applies to most goods and services. Some items have a reduced rate of 5% (e.g., home energy, children's car seats), and some are zero-rated (e.g., most food, children's clothing).

How do I calculate VAT?

To add VAT: multiply the net amount by 1.20 (for 20% VAT). To remove VAT: divide the gross amount by 1.20. For other rates, replace 1.20 with 1 + (rate/100).

When do I need to charge VAT?

You must charge VAT if your business is VAT registered. Registration is mandatory if your VAT taxable turnover exceeds £90,000 in any 12-month period. You can also register voluntarily below this threshold.

Do I need to show VAT separately on invoices?

Yes, if you're VAT registered, you must show the VAT amount separately on invoices. You must also include your VAT registration number, the VAT rate applied, and the total amount inclusive of VAT.

Related Resources

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