By GoForma — ACCA and AAT qualified accountants Uses HMRC 2026/27 rates
2026/27 Tax Year

VAT Calculator

Quickly and accurately calculate VAT with our Free VAT Calculator

Use the calculator How it works

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Key takeaways

  • The standard VAT rate in the UK is 20% for 2026/27. To add VAT: multiply the net by 1.2. To remove VAT from a gross figure: divide by 1.2, not multiply by 0.8 or subtract 20%. At the 5% rate, use 1.05 in place of 1.2.
  • The reduced rate is 5% and applies to domestic fuel and power and children's car seats. The zero rate (0%) applies to most food, children's clothing and books, and to energy-saving materials installed in homes until 31 March 2027 (5% from 1 April 2027). Catering, hot takeaway food and confectionery are standard-rated.
  • VAT-registered businesses charge output VAT on sales and reclaim input VAT on purchases. The difference, net VAT, is paid to or reclaimed from HMRC on each VAT return, usually every 3 months.
  • If you are not VAT-registered, you cannot charge VAT and cannot reclaim input VAT. You must register once your VAT taxable turnover for the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days.
  • Rounding: HMRC allows VAT to be rounded down to the nearest penny per invoice. Cumulative rounding methods should not be used.
How it works

Three inputs, one clear answer

1

Enter the amount

Input either the net (ex-VAT) or gross (inc-VAT) amount depending on what you are starting from.

2

Choose add or remove VAT

Choose the VAT rate (20%, 5% or 0%), then whether to add VAT to a net figure or remove it from a gross amount.

3

See the result

The calculator shows the net amount, VAT element, and gross amount alongside the correct formula used.

This calculator adds or removes UK VAT at 20%, 5% or 0% from any amount, and explains the correct formula for each direction.

Adding VAT to a net price

To add 20% VAT: multiply the net (ex-VAT) price by 1.2. Example: £100 net × 1.2 = £120 gross. The VAT element is £20.

Removing VAT from a gross price

To remove VAT from a gross (VAT-inclusive) price: divide by 1.2. A common mistake is multiplying by 0.8 or subtracting 20%: both give the wrong answer (£120 × 0.8 = £96). Example: £120 gross ÷ 1.2 = £100 net. At 5%, divide by 1.05: £210 ÷ 1.05 = £200. To find only the VAT in a gross price, use the VAT fraction: 1/6 at 20% (£120 ÷ 6 = £20) or 1/21 at 5% (£210 ÷ 21 = £10).

UK VAT rates for 2026/27

Standard rate: 20%. Reduced rate: 5% (domestic fuel, children's car seats). Zero rate: 0% (most food, books, children's clothing, and energy-saving materials installed in homes until 31 March 2027). Exempt supplies (for example postage stamps and many financial and property transactions) carry no VAT, but VAT on costs that relate to them usually cannot be reclaimed. Private school fees have been standard-rated since 1 January 2025.

Output VAT vs input VAT

VAT-registered businesses collect output VAT from customers and pay input VAT to suppliers. On each VAT return, usually every 3 months, you work out the difference and pay the net amount to HMRC, or claim a refund if your input VAT is more than your output VAT. The return and any payment are usually due 1 calendar month and 7 days after the end of the period.

VAT on invoices

VAT invoices must show: your VAT registration number, the rate applied, the net amount, the VAT amount, and the gross amount. Without a valid VAT invoice, your customer cannot reclaim the input VAT.

Who it's for

Made for UK self-employed workers

VAT-registered businesses

Businesses that need to quickly calculate the VAT element of invoices or check a supplier's gross price against the expected net.

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Freelancers and sole traders

Self-employed people who invoice B2B clients and need to confirm the correct VAT-inclusive price to quote or add to an invoice.

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Bookkeepers and finance teams

Finance professionals reconciling VAT on invoices or checking gross-to-net calculations when processing supplier payments.

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Non-registered businesses

Businesses below the £90,000 VAT registration threshold who want to see how much of a quoted price is VAT before deciding whether to register voluntarily.

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Questions answered

Frequently asked questions

What is the standard VAT rate in the UK for 2026/27?

The standard VAT rate is 20%. The reduced rate is 5% and the zero rate is 0%. Exempt supplies carry no VAT, but they are not the same as supplies outside the scope of VAT: VAT on costs that relate to exempt supplies usually cannot be reclaimed.

How do I add VAT to a price?

Multiply the net (ex-VAT) price by 1.2. For example, £100 × 1.2 = £120.

How do I remove VAT from a price?

Divide the gross (VAT-inclusive) price by 1.2. Do not subtract 20%: that gives the wrong answer. £120 ÷ 1.2 = £100.

Can I reclaim VAT on purchases if I am not VAT-registered?

No. Input VAT can only be reclaimed by VAT-registered businesses with a valid VAT invoice from the supplier.

Do I have to charge VAT if I am not registered?

No. Only VAT-registered businesses can charge VAT. Charging VAT without being registered is a criminal offence.

When do I have to register for VAT?

You must register if your VAT taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over £90,000 in the next 30 days. Taxable turnover does not include VAT-exempt or out-of-scope sales. You can choose to register voluntarily below £90,000.

Sources and methodology

Every rate this calculator applies is sourced from HMRC and the UK Government, current for the 2026/27 UK tax year.

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This calculator provides estimates for the 2026/27 UK tax year (England, Wales & Northern Ireland). Actual tax liability depends on your full circumstances. For tailored advice, with an ACCA or AAT qualified accountant.