ganak.appVAT Calculator
Calculate UK VAT instantly. Add or remove VAT at the standard rate (20%), reduced rate (5%), or any custom rate. See net price, VAT amount, and gross price breakdown. Free online VAT calculator for businesses, freelancers, and individuals in the United Kingdom.
Add VAT to net amount
Gross = Net + (Net × 20%)
VAT Breakdown
Net, VAT, and gross amounts
Net Price
Excl. VAT
VAT (20%)
Value Added Tax
Gross Price
Incl. VAT
VAT of 20% added to the net amount.
What Is VAT (Value Added Tax)?
The UK's main consumption tax since 1973
VAT (Value Added Tax) is a consumption tax charged on most goods and services sold in the United Kingdom. It is collected by VAT-registered businesses on behalf of HM Revenue & Customs (HMRC).
VAT is levied at each stage of the supply chain on the value added to a product or service. Businesses can reclaim the VAT they pay on purchases (input tax) against the VAT they charge on sales (output tax), so the tax is ultimately borne by the end consumer.
The UK introduced VAT on 1 April 1973 when it joined the European Economic Community. The current standard rate of 20% has been in effect since 4 January 2011.
How to Calculate VAT
Add or remove VAT with simple formulas
Adding VAT (Net → Gross)
When you have a price before tax and need to find the VAT-inclusive price:
Gross Amount = Net Amount × 1.20Example: Net price = £100.00
VAT = £100.00 × 20% = £20.00
Gross = £100.00 + £20.00 = £120.00
Removing VAT (Gross → Net)
When you have a VAT-inclusive price and need to find the amount before tax:
Net Amount = Gross Amount ÷ 1.20Example: Gross price = £120.00
Net = £120.00 ÷ 1.20 = £100.00
VAT = £120.00 − £100.00 = £20.00
VAT Fraction Shortcut
To quickly find the VAT content of a gross amount at the standard 20% rate, multiply by the VAT fraction 1/6 (i.e. 20/120).
VAT = Gross Amount ÷ 6Example: £120.00 ÷ 6 = £20.00 VAT
UK VAT Rates
Standard, reduced, and zero rates with examples
| Rate | Percentage | Applies To |
|---|---|---|
| Standard | 20% | Most goods and services — electronics, furniture, clothing (adult), professional services, restaurant meals |
| Reduced | 5% | Children's car seats, domestic fuel and power, energy-saving materials, smoking cessation products |
| Zero | 0% | Most food, children's clothing, books and newspapers, public transport, prescription medicines |
| Exempt | N/A | Insurance, financial services, education, health services, postage stamps, betting & gaming |
Zero-rated goods are still VAT-taxable, but the rate is 0%. VAT-exempt goods are outside the VAT system entirely. This distinction matters for businesses reclaiming input VAT.
Who Needs to Register for VAT?
VAT registration thresholds and obligations in the UK
You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period (threshold effective from 1 April 2024).
You can also register voluntarily below the threshold. This lets you reclaim VAT on business purchases and can make your business appear more established to clients.
Key VAT Obligations
- Charge VAT on all taxable goods and services you sell
- Keep VAT records and a VAT account
- Submit VAT Returns to HMRC (usually quarterly)
- Pay any VAT owed to HMRC by the deadline
- Use Making Tax Digital (MTD) compatible software for record-keeping
UK VAT Rate History
How the standard rate has changed since 1973
| Date | Standard Rate | Change |
|---|---|---|
| 1 Apr 1973 | 10% | VAT introduced in the UK |
| 29 Jul 1974 | 8% | Reduced; higher 25% rate on luxury items introduced |
| 18 Jun 1979 | 15% | Single standard rate restored |
| 1 Apr 1991 | 17.5% | Increased to support public spending |
| 1 Dec 2008 | 15% | Temporary cut during financial crisis |
| 1 Jan 2010 | 17.5% | Restored after temporary cut |
| 4 Jan 2011 | 20% | Current rate |
Frequently Asked Questions
Common questions about UK VAT rates, calculations, and registration