VAT Calculator UK
Add UK's 20% VAT to a price, or extract it from a VAT-inclusive amount - the right rate and currency are preloaded, and both stay editable for zero-rated or special cases. Free, no sign-up.
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VAT in UK: the basics
The UK's standard VAT rate is 20%, unchanged since January 2011. A 5% reduced rate covers items like home energy, and a 0% zero rate covers most food, books, and children's clothing. Zero-rated is not the same as exempt: zero-rated sales still count as taxable (you can reclaim input VAT on them), while exempt sales - insurance, education, some financial services - sit outside the system.
Registration is compulsory once taxable turnover passes £90,000 in any rolling 12-month period - you then have 30 days to register with HMRC. Zero-rated sales count toward that threshold; exempt sales don't. Deregistration is possible below £88,000, and voluntary registration below the threshold is common for businesses that want to reclaim input VAT.
UK VAT returns are filed digitally under Making Tax Digital, usually quarterly, through MTD-compatible software. Consumer prices are typically advertised VAT-inclusive, which makes the extract direction of this calculator the one UK sellers reach for most - pulling the real net revenue out of a display price.
Authoritative source: HMRC (GOV.UK). Rates and thresholds change with new finance laws - when in doubt, the authority's current guidance wins.
Worked examples at 20%
Adding VAT: a £1,000 net price x 20% = £200 VAT, so the customer pays £1,200.
Removing VAT: a £1,200 VAT-inclusive price ÷ 1.2 = £1,000 net, with £200 of VAT inside it - not the £240 you'd get by wrongly taking 20% of the gross.
UK VAT FAQ
What is the VAT rate in the UK?
20% is the standard rate, in place since January 2011. A 5% reduced rate applies to items like domestic energy, and a 0% zero rate covers most food, books, and children's clothes. The rate you charge depends on what you sell - HMRC's VAT rates guidance lists the categories.
How do I calculate 20% VAT?
To add it: net price x 0.2, so £1,000 becomes £1,200. To remove it from an inclusive price: divide by 1.2 - £1,200 contains £200 of VAT, not the £240 you'd get by wrongly subtracting 20% of the gross.
When must I register for VAT in the UK?
When your taxable turnover passes £90,000 in any rolling 12-month period - not the tax year, the last 12 months at any point. You then have 30 days to register. Zero-rated sales count toward the threshold; exempt sales don't. Watching a running 12-month total is exactly the kind of thing per-invoice records in Growpins Ledger make painless.
What's the difference between zero-rated and exempt?
Both mean no VAT on the sale, but zero-rated supplies are still taxable - they count toward the registration threshold and let you reclaim VAT on your costs. Exempt supplies (insurance, education, some financial services) do neither. Misclassifying one as the other is a common and expensive mix-up.
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Charging VAT on every invoice?
A free Growpins Ledger account applies your VAT rate to every invoice automatically and totals the tax you've collected for filing - with bookkeeping, P&L, and balance-sheet reports built in. Built by the team behind Growpins, founded by Dokun Bamigboye.
Automate your VAT - sign up freeNeed the invoice itself? Use the Free Invoice Generator, or browse all free tools.