VAT Calculator 2026/27
Updated for the 2026/27tax year · Last updated
Add VAT to a net price or strip VAT from a gross (VAT-inclusive) figure — at standard (20%), reduced (5%), or zero rate. Switch between “add” and “remove” using the dropdown.
Value Added Tax (VAT) is a consumption tax applied to most goods and services sold in the UK. If you are VAT-registered, you must charge VAT to your customers on qualifying sales, collect it, and pay the collected VAT to HMRC on your VAT return (usually quarterly). In return, you can reclaim VAT paid on qualifying business purchases.
The three VAT rates in the UK are: standard rate (20%), which applies to most goods and services; reduced rate (5%), which applies to domestic energy, children’s car seats, mobility aids, and a small number of other items; and zero rate (0%), which applies to most food, books, children’s clothing, public transport, and new residential housing construction. Some supplies are VAT-exempt rather than zero-rated — the distinction matters because zero-rated suppliers can still reclaim input VAT on their costs, whereas exempt suppliers cannot.
You must register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period. You can also choose to register voluntarily below this threshold — which makes sense if your customers are largely VAT-registered businesses (who can reclaim the VAT you charge) and you have significant VAT-able business costs you want to reclaim. Sole traders and small businesses approaching the threshold should track their rolling 12-month turnover carefully, since late registration attracts penalties from the date you should have registered.
Gross (inc-VAT)
£1,200.00
VAT amount
£200.00
| Net (ex-VAT) | £1,000.00 |
| VAT at 20% | £200.00 |
| Gross (inc-VAT) | £1,200.00 |
VAT registration threshold: £90,000 turnover/year.
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How this calculator works
The calculator applies the relevant VAT rate to convert between net and gross figures. The maths is straightforward, but a common mistake when removing VAT from a gross figure trips up even experienced users.
Adding VAT: Gross (VAT-inclusive) = Net × (1 + rate/100). For standard rate: Net × 1.2. For reduced rate: Net × 1.05. The VAT amount is the difference between gross and net. If you quote prices excluding VAT, adding VAT gives the amount your customer pays.
Removing VAT from a gross figure: Net = Gross ÷ (1 + rate/100). For standard rate: Gross ÷ 1.2. This is the correct method. A very common error is to multiply the gross by the rate (e.g., Gross × 20%) — this does not give you the VAT component; it gives you 20% of the total, which overstates the VAT. The correct approach always divides by the gross factor. Example: £120 gross at 20% VAT. Net = £120 ÷ 1.2 = £100. VAT = £120 − £100 = £20. Incorrect: £120 × 20% = £24.
Zero-rated vs exempt:The calculator includes a zero rate option because some transactions need to be explicitly confirmed as zero-rated (rather than exempt or outside scope) for VAT return purposes. If you are unsure whether a supply is zero-rated, reduced-rated, exempt, or outside scope, HMRC’s VAT Notice 700 provides the authoritative breakdown — or consult a VAT specialist for complex situations.