For guidance only. Standard UK VAT rate is 20%.
How to use
- Enter the amount you want to work with.
- Select the VAT rate — standard (20%), reduced (5%), or zero-rated (0%).
- Choose whether to add VAT to a net (ex-VAT) amount, or to strip it from a gross (inc-VAT) total.
- Your net, VAT, and gross figures appear instantly.
About this tool
VAT (Value Added Tax) is a consumption tax applied to most goods and services sold in the UK. The standard rate of 20% has been in place since January 2011. A reduced rate of 5% applies to certain items including domestic energy, children's car seats, and some mobility aids. A zero rate (0%) applies to most food, children's clothing, books, and newspapers — these are still technically VAT-rated goods, just taxed at 0%. Businesses registered for VAT must charge it to customers and can reclaim it on qualifying purchases. If you are self-employed or run a business, the threshold for mandatory VAT registration is £90,000 of taxable turnover in any rolling 12-month period (2024–25 figure).
Standard UK VAT rate: 20%. Reduced rate: 5%. Registration threshold: £90,000 turnover (2024–25).