VAT Calculator
Calculate VAT on prices and amounts instantly. Add VAT to prices or remove VAT from VAT-inclusive amounts. Perfect for UK businesses and consumers.
UK Tax Year: This calculator uses current UK VAT rates for the 2024/25 tax year. Rates and thresholds may change, so always verify with HMRC for the most current information.
What is VAT?
VAT (Value Added Tax) is a consumption tax levied on most goods and services in the UK. The standard VAT rate is currently 20%, with reduced rates of 5% for certain items and 0% for zero-rated goods and services.
VAT is added to the price of goods and services at each stage of production and distribution. Businesses collect VAT on behalf of HM Revenue and Customs (HMRC) and must register for VAT if their taxable turnover exceeds the VAT threshold (£85,000 as of 2024/25 tax year).
How to Use the VAT Calculator
- Select calculation type: Choose whether you want to add VAT to a price or remove VAT from a VAT-inclusive amount.
- Enter amount: Input the amount you want to calculate VAT for.
- Select VAT rate: Choose the applicable VAT rate (20% standard, 5% reduced, or 0% zero rate).
- Calculate: Click "Calculate VAT" to see the breakdown including the original amount, VAT amount, and total.
VAT Rates in the UK
Standard Rate: 20%
Applies to most goods and services including electronics, clothing, restaurant meals, and professional services.
Reduced Rate: 5%
Applies to certain items such as domestic fuel, children's car seats, and mobility aids for the elderly.
Zero Rate: 0%
Applies to essential items like most food, books, newspapers, children's clothing, and public transport.
Frequently Asked Questions
What is the current UK VAT rate?
The standard UK VAT rate is 20%. There are also reduced rates of 5% and 0% for specific goods and services.
How do I calculate VAT on a price?
To add VAT, multiply the price by the VAT rate (e.g., £100 × 1.20 = £120 for 20% VAT). To remove VAT, divide the VAT-inclusive price by (1 + VAT rate).
Do I need to register for VAT?
You must register for VAT if your taxable turnover exceeds £85,000 in a 12-month period. You can also register voluntarily if your turnover is below this threshold.
Can I claim VAT back?
If you're VAT registered, you can reclaim VAT paid on business expenses. This is done through your VAT return submitted to HMRC.
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