Add or remove VAT instantly. Enter an amount, choose your rate, and see the net, VAT, and gross breakdown for standard, reduced, or zero-rated supplies.
| Item | Amount |
|---|---|
| Net Amount (excluding VAT) | £0.00 |
| VAT Rate Applied | 20% |
| VAT Amount | £0.00 |
| Gross Amount (including VAT) | £0.00 |
VAT (Value Added Tax) is charged on most goods and services in the UK. If you are VAT-registered, you add VAT to your prices (output tax) and can reclaim the VAT you pay on business purchases (input tax). The difference is paid to HMRC.
Everything you need to know about UK VAT, rates, registration, and compliance
Value Added Tax (VAT) is a consumption tax that applies to most goods and services in the United Kingdom. Introduced in 1973 following the UK's entry into the European Economic Community, VAT has become one of the government's most significant sources of revenue. Unlike a sales tax that is charged only at the point of sale to the end consumer, VAT is collected at every stage of the supply chain. Businesses can reclaim the VAT they pay on their own business purchases (input tax), meaning the tax burden ultimately falls on the final consumer. This system creates a self-policing mechanism where each business in the chain has an incentive to ensure VAT is properly accounted for.
Calculating VAT is straightforward once you understand the two main operations. To add VAT to a net amount, multiply the net amount by the VAT rate to find the VAT amount, then add it to the net to get the gross total. For example, if you have a net price of £100 at 20% VAT, the VAT is £20 (£100 x 0.20) and the gross price is £120. To remove VAT from a gross price (to find the net amount when VAT is already included), divide the gross by 1 + the VAT rate. For £120 including 20% VAT, the net is £100 (£120 / 1.20) and the VAT is £20. Our calculator handles both operations instantly for any VAT rate.
The UK has three main VAT rates for 2025/26. The standard rate of 20% applies to most goods and services, including adult clothing, electronics, household items, professional services, and hospitality. The reduced rate of 5% covers domestic fuel and power, children's car seats, mobility aids for the elderly, and certain home renovation work under the reduced rate scheme. The zero rate of 0% applies to essential items including most food and drink (but not restaurant meals or hot takeaway food), children's clothing and footwear, books and newspapers, public transport, and prescription medicines. Some supplies, such as insurance, education, and certain financial services, are exempt from VAT entirely.