UK VAT Rates and VAT Calculations
Last reviewed: 8 October 2026
VAT is applied to many goods and services in the UK. A VAT calculator can handle the arithmetic, but the important question is which rate applies to the particular supply.
Current UK VAT rates
GOV.UK lists a standard rate of 20%, a reduced rate of 5% and a zero rate of 0%. Some supplies are exempt rather than zero-rated, which is a different VAT treatment.
Adding VAT
If a net price is £100 and VAT is 20%, VAT is £20 and the gross price is £120.
Removing VAT
Removing VAT is not the same as subtracting 20% from a VAT-inclusive price. A £120 gross price at 20% VAT is divided by 1.20 to recover the £100 net price.
Zero-rated versus exempt
Both can result in no VAT being charged to the customer, but their treatment for VAT accounting can differ. Businesses should check official guidance where classification is unclear.
Rates can change
The calculator allows a custom VAT rate because rates and special cases can change. Check current guidance before relying on a rate for accounting or invoicing.
Official source
See the current VAT rates on GOV.UK.