VAT Calculator

What is the current UK VAT rate?

The standard UK VAT rate is 20%. There is also a reduced rate of 5% and a zero rate (0%) for certain goods and services.

How do I add VAT to a price?

Multiply the net price by 1.20 for 20% VAT. For example, £500 × 1.20 = £600 gross.

How do I remove VAT from a price?

Divide the gross price by 1.20. For example, £600 ÷ 1.20 = £500 net. Do not subtract 20%.

When do I need to register for VAT?

When your taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to exceed it in the next 30 days.

What is the difference between zero-rated and VAT exempt?

Zero-rated means 0% VAT but you can reclaim input VAT. Exempt means outside the VAT system entirely — no reclaims.

Can I reclaim VAT on a car?

Only if 100% business use. But you can reclaim 50% of VAT on a car lease even with private use.