UK VAT Calculator 2026
How to Calculate VAT in the UK (2026)?
Calculating VAT (Value Added Tax) is essential for businesses and consumers in the United Kingdom. It is a consumption tax applied to most goods and services.
Current VAT Rates
- Standard Rate (20%): Applies to most goods and services (electronics, clothing, professional services).
- Reduced Rate (5%): Applies to some goods and services, such as children's car seats and home energy.
- Zero Rate (0%): Applies to most food, children's clothes, and books.
Formulas to Add and Subtract VAT
If you prefer to calculate VAT manually, you can use the following mathematical formulas:
Add VAT: Gross Amount = Net Amount × (1 + VAT Rate/100)
Remove VAT: Net Amount = Gross Amount / (1 + VAT Rate/100)
Why use an online VAT calculator?
Our tool avoids common rounding errors in manual accounting and provides the exact breakdown for your invoices in seconds, helping you stay compliant with HMRC requirements.
Frequently Asked Questions about UK VAT
What is the difference between Net and Gross?
Net Amount is the price before tax is added. Gross Amount is the final price including VAT.
What VAT rates exist in the UK?
There are three main rates:
- Standard (20%) — most goods and services
- Reduced (5%) — home energy, children's car seats
- Zero (0%) — most food, children's clothes, books
How do I exclude VAT from a total price?
To extract 20% VAT from a total price, divide the total by 1.20. The difference between the original total and the result is the VAT amount.