UK VAT Calculator
Add VAT to a price, or find out how much VAT is inside a total, at the UK's 20%, 5% and 0% rates.
How your VAT is worked out
Add VAT: price × (1 + rate). Remove VAT: total ÷ (1 + rate). At 20%, VAT is 1/6 of the total.
- 1
Work out the VAT
£1,000.00 × 20%
= £200.00 - 2
Add it on
£1,000.00 + £200.00
= £1,200.00 - 3
The quick check
£1,200.00 ÷ 6
= £200.00 VAT
Read more: the formula, a worked example, UK VAT rates and the £90,000 threshold
The formula
Add VAT: total = price × (1 + rate ÷ 100)
Remove VAT: price = total ÷ (1 + rate ÷ 100)
VAT inside a total = total × rate ÷ (100 + rate)
at 20%: VAT = total ÷ 6 · at 5%: VAT = total ÷ 21
From the VAT: price = VAT ÷ (rate ÷ 100)
VAT return: VAT to pay = VAT on sales − VAT on purchases
Worked example
£1,000 plus 20% VAT is £1,000 × 20% = £200 of VAT, so the total is £1,000 + £200 = £1,200. To take VAT out of £1,200, divide by 1.2 to get back to £1,000. The quick check: £1,200 ÷ 6 = £200, because at 20% the VAT is one sixth of a VAT-inclusive price. A common mistake is to take 20% off £1,200, which gives £240 instead of the right £200.
Quantity, discount and several items
VAT is charged on the price after any discount. 4 items at £25 with a 10% discount come to £100 × 0.9 = £90, so 20% VAT is £18 and the total £108. An invoice can mix rates: £1,000 at 20%, £200 at 5% and two £50 items at 0% carry £200 + £10 + £0 = £210 of VAT, a total of £1,510.
VAT return
A VAT-registered business adds up the VAT it charged on sales (output VAT) and takes off the VAT it paid on business purchases (input VAT). Charge £2,000 of VAT and spend £3,600 including 20% VAT on purchases (£3,600 ÷ 6 = £600 of VAT), and you pay HMRC £1,400. If your input VAT is more than your output VAT, HMRC pays you back the difference.
Flat Rate Scheme
On the Flat Rate Scheme you still charge customers VAT at the normal rate, but you pay HMRC a fixed percentage of your VAT-inclusive turnover and usually can't reclaim VAT on purchases. £60,000 of sales including VAT at a 12% flat rate is £7,200 to pay. Each trade has its own flat rate, a "limited cost trader" (very little spent on goods) uses a higher rate, and there is a 1% discount in the first year of registration. The 16.5% limited cost rate, the 1% discount and the test used here (goods under 2% of turnover or under £1,000 a year) are not checked against gov.uk; check the current rates for your trade on gov.uk before you join.
UK VAT rates
| Rate | Typical goods and services |
|---|---|
| 20% | Standard rate: most goods and services |
| 5% | Reduced rate: home energy, children's car seats, mobility aids, nicotine patches |
| 0% | Zero rate: most food, children's clothes and footwear, books and newspapers, sanitary products, household water, prescriptions; energy-saving materials until 31 March 2027 |
| Exempt | No VAT at all: postage stamps, insurance, finance, most health services |
Zero-rated and exempt are not the same: zero-rated sales still count as taxable turnover and you can reclaim VAT on related costs, while exempt sales don't count and usually don't let you reclaim. The standard rate has been 20% since 4 January 2011; before that it was 17.5% (type 17.5 in the rate box for older invoices).
When you must register
You must register for VAT if your taxable turnover (everything that isn't exempt) went over £90,000 in the last 12 months, or you expect it to go over £90,000 in the next 30 days alone. You can register voluntarily below that.
For general information. Rates and the threshold checked on gov.uk on 10 October 2026. Flat Rate Scheme figures are not checked: confirm them on gov.uk. Rules change; for invoices and returns, check gov.uk or ask an accountant.
Common questions
How do I calculate 20% VAT?
Multiply the price by 0.2 to get the VAT, or by 1.2 to get the total. £1,000 plus 20% VAT is £200 of VAT, so the total is £1,200. At the 5% rate, multiply by 0.05 for the VAT or 1.05 for the total. VAT is charged on the price after any discount.
How do I work out the VAT in a price that includes VAT?
Divide the total by 1.2 to get the price before 20% VAT, or simply divide the total by 6 to get the VAT itself. £1,200 ÷ 1.2 = £1,000, and £1,200 ÷ 6 = £200 of VAT. At 5%, the VAT is the total ÷ 21. Taking 20% off £1,200 gives £240, which is wrong.
What are the UK VAT rates?
The standard rate is 20% and covers most goods and services. The reduced rate of 5% covers things like home energy and children's car seats. Most food, children's clothes, books and newspapers are zero-rated at 0%, and some things, like insurance, finance and postage stamps, are exempt from VAT altogether.
What is the VAT registration threshold in the UK?
You must register for VAT if your taxable turnover went over £90,000 in the last 12 months, or you expect it to go over £90,000 in the next 30 days alone. Taxable turnover is everything that isn't exempt. You can register voluntarily below that.
What is the difference between zero-rated and exempt?
Zero-rated sales are taxed at 0%: they still count as taxable turnover and you can reclaim VAT on related costs. Exempt sales have no VAT at all, don't count towards taxable turnover and usually don't let you reclaim VAT on costs.
How does the Flat Rate Scheme work?
You still charge customers VAT at the normal rate, but you pay HMRC a fixed percentage of your VAT-inclusive turnover and usually can't reclaim VAT on purchases. Each trade has its own flat rate. The flat rates used here are not checked against gov.uk, so check the current rate for your trade there before you join.
Related calculators
Made by Zulu Calculator, part of AlphaZulu LLC. Formulas are shown in full and rule figures are checked against official sources; see how we build calculators.