VAT Calculator 2026
Free UK VAT calculator for 2026. Add VAT to a net (VAT-exclusive) amount to find the gross total, or remove VAT from a gross amount to find the net and the VAT itself. Supports all three UK rates: standard 20%, reduced 5% and zero-rated 0%.
Your VAT result
- Gross total (incl. VAT)£120.00
- VAT amount£20.00
- Net amount (excl. VAT)£100.00
- Gross total (incl. VAT)£120.00
- VAT rate applied20%
How it's calculated
VAT is a percentage added to the price of most goods and services. Whether you are adding it or stripping it out depends on which figure you start with. When you start from a net (VAT-exclusive) price — the figure a business quotes before tax — you simply multiply by the rate to find the VAT, then add it back to reach the gross (VAT-inclusive) total the customer actually pays. When you start from a gross price that already contains VAT, you cannot just take 20% off the total, because the 20% was charged on the smaller net figure, not on the whole. Instead you divide the gross by a VAT multiplier (1.20 at the standard rate) to recover the net, and the VAT is whatever is left over. This is the single most common VAT mistake: subtracting 20% of a £120 gross gives £24, not the correct £20. The calculator handles both directions so you avoid that trap. The UK applies one of three rates to each supply — the standard 20%, the reduced 5%, or the zero rate 0% — and you choose which applies. Zero-rated supplies are still taxable in law (so a registered trader can reclaim the VAT it paid on costs) but the rate charged to the customer is nil, which is why net and gross are always identical at 0%.
Add VAT (net → gross):
VAT = net × rate
gross = net + VAT = net × (1 + rate)
Remove VAT (gross → net):
net = gross ÷ (1 + rate)
VAT = gross − net
Multipliers: 1.20 at 20%, 1.05 at 5%, 1.00 at 0%Worked example
Suppose you are a VAT-registered tradesperson quoting £850.00 net for a job at the standard 20% rate, and you want to know the gross invoice total and the VAT line:
| Net amount (excl. VAT) | £850.00 |
| VAT at 20%£850.00 × 0.20 | £170.00 |
| Gross total (incl. VAT)£850.00 + £170.00 | £1,020.00 |
The customer pays £1,020.00 and £170.00 of that is VAT you collect on HMRC's behalf. Working backwards from the £1,020.00 gross confirms the figures: £1,020.00 ÷ 1.20 = £850.00 net, and £1,020.00 − £850.00 = £170.00 VAT. Note that taking 20% off the gross (£204.00) would be wrong — that is the classic error the calculator's “Remove VAT” direction prevents.
When your result may differ
This calculator gives the arithmetic for a single supply at a rate you choose; it does not decide which rate is correct, and several situations change the real figure. Mixed-rate invoices need each line calculated at its own rate — you cannot apply one blended rate to the total. Exempt supplies (postage stamps, most insurance, finance and certain property) carry no VAT at all and are different from zero-rated, so they are not a selectable option here. The VAT Flat Rate Scheme lets some small businesses pay a fixed percentage of gross turnover to HMRC while still charging customers the normal 20%, so the amount you remit differs from the VAT shown on your invoices. Rounding can also cause penny-level differences: HMRC allows rounding per line, per invoice or down to the nearest penny, and this tool rounds the displayed result to two decimal places while keeping full precision internally. Finally, only VAT-registered businesses charge VAT at all — if a supplier's taxable turnover is below the £90,000 registration threshold and they have not registered voluntarily, there is no VAT to add or remove.
Rates and thresholds
UK VAT rates and the registration threshold — 2026, unchanged from prior years.
| Rate | Percentage | Typical examples |
|---|---|---|
| Standard rate | 20% | Most goods and services (in force since 4 January 2011) |
| Reduced rate | 5% | Domestic fuel and power, children's car seats, energy-saving materials, mobility aids |
| Zero rate | 0% | Most food, books and newspapers, children's clothing, most prescriptions |
| Registration threshold | £90,000 | Taxable turnover over any rolling 12-month period |
Sources & legal basis
| Source | What it covers | Last checked |
|---|---|---|
| HMRC — VAT rates on different goods and services | The 20%, 5% and 0% rates and what each applies to | |
| HMRC — Register for VAT | The £90,000 registration threshold and when to register | |
| HMRC — Rates of VAT on different goods and services (detailed) | Detailed classification of which rate applies to specific supplies | |
| HMRC — VAT Flat Rate Scheme | How the flat-rate scheme changes the VAT a small business remits |
Update log
- — Confirmed 2026 VAT rates (20%, 5%, 0%) and the £90,000 registration threshold against gov.uk.
- — Added how-it-works explanation, worked example, rates table and source table.
Frequently asked questions
What are the UK VAT rates in 2026?
The UK has three VAT rates in 2026, unchanged from previous years: the standard rate of 20% (most goods and services, in place since 4 January 2011), the reduced rate of 5% (e.g. domestic fuel and power, children's car seats, energy-saving materials and mobility aids) and the zero rate of 0% (e.g. most food, books and newspapers, children's clothing and most prescription items).
How do I add VAT to a net amount?
To add VAT, multiply the net amount by the rate and add the result back. At the standard 20% rate on a net of £100.00, the VAT is 100 × 0.20 = £20.00 and the gross total is 100 + 20 = £120.00. In the calculator, choose the direction “Add VAT (net → gross)” and enter the net amount.
How do I remove (extract) VAT from a gross amount?
To remove VAT from a VAT-inclusive total, divide it by (1 + rate). At 20% on a gross of £120.00, the net is 120 ÷ 1.20 = £100.00 and the VAT is the difference: 120 − 100 = £20.00. In the calculator, choose the direction “Remove VAT / extract from total (gross → net)”.
What is the difference between zero-rated and exempt?
Zero-rated (0%) supplies are taxable but charged at 0%, so a registered business adds no VAT yet can still reclaim the input VAT it paid. Exempt supplies (such as postage stamps and most financial and property transactions) carry no VAT and generally do not allow input VAT to be reclaimed. Because of this, exempt is not a selectable rate in this calculator — only 20%, 5% and 0% are.
When does a business have to register for VAT?
A business must register for VAT once its taxable turnover exceeds £90,000 over any rolling 12-month period, or if it expects to exceed that threshold in the next 30 days. Registration can also be done voluntarily below the threshold, which lets a business reclaim input VAT. Always confirm your position with HMRC or an accountant.
Does this calculator replace deciding which VAT rate applies?
No. The calculator computes VAT for the rate you select, but it does not determine which rate is correct for a given good or service. Rate classification depends on HMRC's detailed guidance on rates of VAT for different goods and services; if in doubt, check gov.uk or consult an accountant.