VAT calculator for the United Kingdom
Add or remove VAT for the United Kingdom in GBP — preset with the current rates (20% & 5%).
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VAT rates in the United Kingdom (2026)
The standard rate of 20% applies to most goods and services. Reduced rates (5%) apply only to specific goods and services defined by law. Locally, the tax is called Value Added Tax (VAT). Registration / small-business threshold: £90,000 taxable turnover in a rolling 12 months.
Good to know
- VAT registration is compulsory once taxable turnover exceeds £90,000 in a rolling 12-month period; below that you can register voluntarily. If not registered, do not show VAT on invoices.
- For retail sales of £250 or less (incl. VAT) you may issue a simplified invoice.
How it’s calculated
VAT is charged as a percentage of the net (pre-tax) price. To add it, multiply the net amount by the rate; to find the net amount inside a tax-inclusive price, divide the gross amount by 1 plus the rate.
A common mistake is to remove VAT by subtracting the rate from the gross price (e.g. 119 − 19% = 96.39). That is wrong — the correct net amount is 119 ÷ 1.19 = 100.
Gross = Net × (1 + rate ÷ 100)VAT = Net × rate ÷ 100Net = Gross ÷ (1 + rate ÷ 100)
Frequently asked questions
How do I add VAT to a price in the United Kingdom?
Multiply the net price by 1.2. For example, £100.00 plus 20% VAT is £100.00 × 1.2 = £120.00.
How do I remove VAT from a gross price in the United Kingdom?
Divide the gross price by 1.2: £120.00 ÷ 1.2 = £100.00. The VAT included is £20.00.
What VAT rates apply in the United Kingdom?
The United Kingdom uses a standard VAT rate of 20%. Reduced rates of 5% apply to specific goods and services.
Are these VAT rates for the United Kingdom up to date?
The rates were last reviewed in October 2026. Tax rates can change, so confirm with the tax authority before relying on them for filings.
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Results are estimates for general information only and are not tax, legal or financial advice.