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VAT calculator: add or remove VAT

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The UK VAT rates

RateApplies toExamples
Standard, 20%Most goods and servicesMost business services, adult clothing, electronics, prams and pushchairs
Reduced, 5%Some goods and servicesChildren's car seats, mobility aids for older people, smoking cessation products
Zero, 0%Some goods and servicesMost food for human consumption, children's clothes and footwear, books, newspapers, leaflets
ExemptSome goods and servicesMost insurance, most financial services, some education and health services

Some items in a zero-rated group are standard-rated, such as catering, alcohol, confectionery and crisps within food. Check HMRC's list for your goods or services.

Zero-rated is not the same as exempt

Zero-ratedExempt
VAT charged0%None
Counts towards the £90,000 thresholdYesNo
Reclaim VAT on related costsYes, if VAT registeredNo
On your VAT returnIn Box 6In Box 6

How to work out VAT

  • Add VAT at 20%: multiply the net price by 1.2. £100 net becomes £120.
  • Remove VAT at 20%: divide the gross price by 1.2. £120 gross is £100 net and £20 VAT. The VAT is one sixth of the gross price.
  • Add VAT at 5%: multiply by 1.05. Remove it: divide by 1.05. The VAT is one twenty-first of the gross price.

Charging the right rate

  • Show the rate for each item on your VAT invoices.
  • Keep VAT at different rates in separate columns in your records, so your VAT return adds up.
  • If you are unsure of the rate, check HMRC's list of VAT rates on different goods and services, or ask HMRC.

For what goes on a VAT invoice, see VAT invoice requirements.

Every VAT rate, filed from your spreadsheet, from £5 a month

Keep VAT at each rate in its own column, total the nine boxes by formula, upload the CSV and file.

  1. Connect to HMRC on HMRC's own page with your Government Gateway sign-in. We never see that password.
  2. See your VAT periods, due dates, amounts owed and payments, read from HMRC.
  3. Upload your nine box totals as a CSV. Box 3 and Box 5 are worked out and every box is checked.
  4. Submit and keep HMRC's receipt. Reminder emails arrive before each due date.
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Final thoughts

Most sales are standard-rated at 20%, with 5% and 0% for specific goods and services, and some supplies exempt. Get the rate right on each invoice, keep each rate in its own column, and your VAT return follows.

Disclaimer: This guide gives general information, not advice for your business. Rates for specific goods and services can depend on details, so check HMRC's guidance.

Frequently asked questions

Checked against HMRC's list of VAT rates on different goods and services and GOV.UK VAT rates guidance. November 2026.

What are the VAT rates in the UK?
20% standard rate for most goods and services, 5% reduced rate for some, such as children's car seats, and 0% zero rate for some, such as most food, children's clothes and books. Some supplies, such as most insurance, are exempt.

How do I add VAT at 20%?
Multiply the net price by 1.2. £100 net becomes £120 including VAT.

How do I remove VAT from a price?
At 20%, divide the gross price by 1.2. The VAT is one sixth of the gross price. At 5%, divide by 1.05.

What is the difference between zero-rated and exempt?
Zero-rated sales are taxable at 0%, count towards the £90,000 threshold and let you reclaim VAT on related costs. Exempt sales carry no VAT, do not count towards the threshold, and you cannot reclaim related VAT.

Is food zero-rated for VAT?
Most food for human consumption is zero-rated, but some items are standard-rated, such as catering, alcohol, confectionery and crisps.

Every VAT rate, filed from your spreadsheet, from £5 a month.

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