UK VAT Calculator 2026: Add or Remove VAT Instantly

⚡ UK VAT Rates 2026 — Updated April 2026
Standard rate: 20% | Reduced rate: 5% | Zero rate: 0% | Registration threshold: £90,000 annual turnover

Value Added Tax (VAT) is charged on most goods and services in the UK. Businesses registered for VAT must charge it on taxable sales and pay it to HMRC, minus any VAT paid on business purchases.

UK VAT Rates 2026

VAT Rate	Percentage	What It Applies To
Standard rate	20%	Most goods and services — default rate
Reduced rate	5%	Domestic fuel, children's car seats, mobility aids, smoking cessation
Zero rate	0%	Most food, children's clothing, books, public transport, prescriptions
Exempt	N/A	Financial services, insurance, education, health — no VAT charged
Outside scope	N/A	Wages, dividends — not subject to VAT

How to Calculate VAT UK 2026

Adding 20% VAT to a net price

Calculation	Formula	Example (£100 net)
VAT amount	Net × 0.20	£100 × 0.20 = £20
Gross price	Net × 1.20	£100 × 1.20 = £120

Removing 20% VAT from a gross price

Calculation	Formula	Example (£120 gross)
VAT amount	Gross ÷ 6	£120 ÷ 6 = £20
Net price	Gross ÷ 1.20	£120 ÷ 1.20 = £100

VAT Registration Threshold UK 2026

Threshold	Amount	Details
Registration	£90,000	Register if taxable turnover exceeds this in any 12-month rolling period
Deregistration	£88,000	Can deregister if turnover falls below this
Voluntary	Any turnover	Can register voluntarily to reclaim input VAT

⚠️ The VAT registration threshold is frozen at £90,000 for 2026-27. Monitor your rolling 12-month turnover — HMRC uses the rolling figure, not annual turnover.

What is the current UK VAT rate in 2026?

The standard UK VAT rate is 20%. A reduced rate of 5% applies to domestic fuel and some other goods. A zero rate applies to most food, children's clothing, books, and public transport.

What is the VAT registration threshold in 2026?

The VAT registration threshold is £90,000 in 2026. You must register if your taxable turnover exceeds £90,000 in any rolling 12-month period.

How do I calculate 20% VAT?

To add 20% VAT: multiply net price by 1.20. To remove 20% VAT from a gross price: divide by 1.20. The VAT amount alone is the gross price divided by 6.

Sources: HMRC VAT rates — GOV.UK · HMRC VAT registration — GOV.UK · Making Tax Digital for VAT — GOV.UK