Net (exc. VAT)
£1,000.00
VAT Amount
£200.00
Gross (inc. VAT)
£1,200.00
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UK VAT Rates Explained

Standard Rate (20%): Applies to most goods and services in the UK. This has been 20% since .

Reduced Rate (5%): Applies to certain goods and services including home energy, children's car seats, and some energy-saving materials.

Zero Rate (0%): Items are VAT-taxable but at 0%. Includes most food, children's clothing, books, newspapers, and public transport.

VAT Registration Threshold: For 2025/26, businesses must register for VAT when taxable turnover exceeds £90,000 in any 12-month period.

How do I add VAT to a price?

Multiply the net price by 1.20 for standard rate. For example, £100 × 1.20 = £120 including VAT. The VAT amount is £100 × 0.20 = £20.

How do I remove VAT from a price?

Divide the gross price by 1.20 for standard rate. For example, £120 ÷ 1.20 = £100 net. The VAT element is £120 − £100 = £20. This is sometimes called a "reverse VAT calculation".

When do I need to register for VAT?

You must register when your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect it to exceed £90,000 in the next 30 days alone.