UK VAT rates
The standard rate is 20% (most goods and services), the reduced rate is 5% (for example home energy and children's car seats) and some items are zero-rated (most food and children's clothes).
How to remove VAT
Divide the VAT-inclusive price by 1.2 for 20% VAT (or 1.05 for 5%). Example: £120 ÷ 1.2 = £100 net, so the VAT is £20. Don't just take 20% off the gross – that gives the wrong answer (£96).
Frequently asked questions
How do I calculate 20% VAT?
Multiply the net price by 1.2 to get the gross price, or by 0.2 to get just the VAT.
What is the VAT registration threshold?
£90,000 of taxable turnover in a rolling 12 months.
Sources
Disclaimer: This calculator gives an estimate using official 2026/27 rates published on GOV.UK and devolved government sites (checked October 2026). It is not financial, tax or legal advice and may not cover every situation. Always check with the official source, HMRC, your lender or a qualified adviser before making decisions.