United Kingdom VAT Calculator (2026) — Add or Reverse VAT
United Kingdom's standard VAT rate is 20%, with reduced rates of 5% on certain goods and services. Use the calculator below to add VAT to a net price, or reverse a VAT-included gross price to find the net amount.
How to use this calculator:
- Adding VAT — enter a net (pre-VAT) price, pick "Add VAT to net price," and the calculator applies United Kingdom's rate to show the VAT amount and gross total.
- Reversing (removing) VAT — enter a gross price that already includes VAT, pick "Remove VAT from gross price," and the calculator divides by 1 + the rate to isolate the net price and the exact VAT paid.
Understanding United Kingdom VAT
United Kingdom charges a standard VAT rate of 20%, alongside reduced rate of 5% for specific categories of goods and services. 0% rate applies to most food and children’s clothing
Home energy and children's car seats at 5%; most food and children's clothing are zero-rated (0%) rather than exempt, letting sellers still reclaim input VAT.
VAT registration threshold
£90,000
EU distance-selling threshold
€10,000/year (EU-wide, applies once combined cross-border B2C sales exceed this)
Bloc
Non-EU European country
Why Reverse VAT Calculation Matters
Invoices usually show only the VAT-included gross price, so separating revenue from VAT collected — for bookkeeping, expense claims, or cross-border comparisons — means working backward from that total. Dividing by (1 + rate) isn't the same as subtracting the rate, which is why the calculator above handles it exactly.
History & How the Rate Is Built
The UK introduced VAT on April 1, 1973 at a 10% standard rate, replacing the old Purchase Tax (a single-stage wholesale tax with rates up to 55% on luxury goods) shortly after joining the EEC. The UK deliberately zero-rated food, children's clothing, and books from the start — a political choice preserved under an EU 'grandfathering' rule that barred creating new zero-rated categories but allowed keeping existing ones.
Since Brexit, the UK has regained full sovereignty over its VAT rates and exemptions without needing EU approval — used so far mainly for narrow changes like zero-rating period products (sanitary items) in January 2021, rather than a wholesale rewrite of the zero-rating list.
Business Use Case: Registering for VAT in United Kingdom
A UK grocery retailer sells most food at 0% VAT (zero-rated, not merely exempt) — meaning the retailer can still reclaim VAT paid on its own business inputs, unlike a true exemption, which is why the UK's zero-rating list is more business-friendly than an exemption would be.
Real-World Example
A £100.00 net price in United Kingdom at the standard rate of 20%:
- VAT amount: £100.00 × 20% = £20.00
- Gross price: £100.00 + £20.00 = £120.00
United Kingdom VAT Compliance & Registration
Domestic businesses in United Kingdom generally must register for VAT once annual taxable turnover exceeds £90,000. Below that threshold, small businesses can often trade without charging VAT, though voluntary registration is usually available. For cross-border EU sales, the €10,000 distance-selling threshold and the One-Stop Shop (OSS) apply regardless of United Kingdom's domestic threshold — once total EU-wide B2C sales exceed €10,000, VAT is charged at the buyer's country rate and reported through a single OSS return.
Frequently Asked Questions — United Kingdom VAT
What is the VAT rate in United Kingdom?▾
What is the VAT registration threshold in United Kingdom?▾
How do I remove VAT from a United Kingdom price?▾
Do I charge United Kingdom VAT rates when selling from another EU country?▾
Is United Kingdom in the EU VAT area?▾
References & Sources
Methodology: standard and reduced VAT rates are cross-checked against the European Commission's official VAT rates page and Tax Foundation's 2026 tables. All EU member states must apply a standard rate of at least 15% and follow the EU VAT Directive's rules on reduced-rate categories — non-EU countries on this list set VAT/GST policy independently.
Rates last verified January 2026. VAT rates and thresholds are set by national legislation and can change — always confirm current figures with United Kingdom's national tax authority before invoicing. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.
Jordan Hayes
Verified AuthorPersonal Finance Content Strategist
Jordan is a personal finance content strategist with 9+ years writing about mortgages, retirement, tax strategy, and budgeting. Every guide is cross-referenced with IRS publications, Federal Reserve data, and CFPB guidance to make complex calculations accessible. Editor at CalculatorApp.me.
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Tax-rate data, review & limitations
Jurisdiction: United Kingdom. Effective date: January 1, 2026. Reviewed by CalculatorApp.me editorial staff on July 26, 2026; next scheduled review: October 26, 2026.
Rates are reference estimates, not tax advice. Local rules, exemptions, filing status, and effective dates can change the amount due.
Primary sources
- European Commission Taxes in Europe database
- Tax Foundation, 2026 VAT Rates in Europe