What is the current UK VAT rate?

The UK standard VAT rate is 20%, applied to most goods and services. A reduced rate of 5% applies to certain items like domestic fuel, and a zero rate (0%) applies to essentials such as most food and children's clothing.

When must a UK business register for VAT?

A UK business must register for VAT when its taxable turnover exceeds £90,000 over a rolling 12-month period. Voluntary registration is possible below this threshold.

UK VAT Calculator | Calculate 20% VAT Instantly

The United Kingdom applies a standard VAT rate of 20% on most goods and services. A reduced rate of 5% applies to home energy, children's car seats, and certain renovation works. Some items such as most food, children's clothing, and books are zero-rated (0%). To add 20% VAT to a net price, multiply by 1.20. For example, an item priced at £100 net becomes £120 including VAT, where £20 is the tax amount. To extract VAT from a gross price, divide by 6 (for 20% VAT) — so £120 gross contains £20 VAT.

UK VAT Calculator (20% Standard Rate)

How UK VAT Works

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