the United Kingdom VAT calculator
Add or remove the United Kingdom VAT at the rates in force.
Calculator inputs
Results
Enter your values and press “Calculate” to see the result.
Official source: HM Revenue & Customs (HMRC) ↗
In short
- What it calculates
- Add or remove the United Kingdom VAT at the rates in force.
- Formula used
Add: total = net × (1 + rate ÷ 100)- Example
- A product priced £1,000 before tax, at the standard 20 % rate:
the United Kingdom VAT calculator
In the United Kingdom the indirect tax on consumption is VAT (Value Added Tax), with a standard rate of 20%.
The UK distinguishes zero-rated from exempt, and they are not the same: on zero-rated supplies the seller can still reclaim input VAT, and the category covers basic food, books and children's clothing. The 5% rate mainly applies to domestic energy.
This calculator works both ways: it adds the tax to a price without it and also breaks it out of a final price.
How it works
Enter the amount, choose whether to add or remove the tax and pick the rate. The rates available in the United Kingdom are: standard 20 %, reduced 5 % and zero-rated 0 %.
If you need a rate other than those listed, choose “other rate” and type it in.
Formula
Add: total = net × (1 + rate ÷ 100)
Remove: net = total ÷ (1 + rate ÷ 100)
Tax = total − net
Worked example
A product priced £1,000 before tax, at the standard 20 % rate:
VAT amount: £200
Final price: £1,200
The other way round, starting from £1,200 tax included, the base is £1,000 again.
Explanation
Zero-rated and exempt: the distinction that matters
In the UK they are not synonyms. Zero-rated means the customer pays no VAT while the seller still reclaims VAT on purchases: most food, books, children's clothing and children's footwear fall here. Exempt activities — insurance, financial services, education, healthcare — also carry no VAT, but the seller can reclaim nothing.
The registration threshold
Not every business has to register. There is an annual turnover threshold below which registration is voluntary. Registering lets you reclaim VAT on purchases but obliges you to charge it, which raises your price for customers who cannot deduct it.
Making Tax Digital
Returns are filed digitally through compatible software, and records must be kept electronically. It is mandatory for VAT-registered businesses.
After Brexit
Northern Ireland retains special treatment for goods traded with the European Union. Sales from Great Britain to the EU are now exports, with their own customs rules.
Frequently asked questions
Which VAT rates apply in the United Kingdom?
The rates built into the calculator are: standard 20 %, reduced 5 % and zero-rated 0 %. Which one applies to a given product or service is set by the United Kingdom legislation; if in doubt, check with HM Revenue & Customs (HMRC).
How do I remove VAT from a final price?
Choose the option to remove the tax and the calculator divides the final price by one plus the rate. Subtracting the percentage from the final price gives the wrong answer.
What is the difference between zero-rated and exempt?
In both cases the customer pays no tax, but zero-rating lets the seller reclaim VAT on purchases, while exemption does not.
How often is VAT filed?
Usually quarterly, although annual and monthly schemes exist depending on the business.
Does food carry VAT?
Most basic foodstuffs are zero-rated, but hot takeaway food, alcoholic drinks, confectionery and restaurant meals are taxed at 20%.
What is the flat rate scheme?
A simplified option for smaller businesses: they pay a fixed percentage of gross turnover instead of tracking input and output VAT in detail.
Need to calculate something else?
These tools are often used alongside this calculator.
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