UK VAT Calculator
20% standard, 5% reduced and zero-rated.
Rates change with budgets and local ballot measures, and the rate that applies depends on the delivery address and product category. Treat these as planning figures, not as a filing.
Price including VAT
£120.00
£20.00 of VAT at 20%
Registration is compulsory once taxable turnover exceeds the threshold on any rolling 12-month basis, not the tax year. Zero-rated categories including most food, books and children's clothing carry 0% but still count toward turnover.
How the UK VAT Calculator works
UK VAT is 20% standard, 5% on a short list including domestic fuel and children's car seats, and 0% on a longer list including most food, books and children's clothing. Zero-rated is not the same as exempt, and the difference decides whether you can reclaim input VAT.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What is the UK VAT rate?
20% standard. A 5% reduced rate applies to domestic fuel and power, energy-saving materials and a few other categories. Zero rate applies to most food, books, newspapers, children's clothing and public transport.
What is the difference between zero-rated and exempt?
Zero-rated sales are taxable at 0% — they count toward your registration threshold and you can reclaim input VAT on the costs of making them. Exempt sales are outside VAT entirely, do not count toward the threshold, and block the related input VAT recovery.
How do I remove 20% VAT from a price?
Divide by 1.2, or equivalently take one sixth off. A £120 gross price is £100 net plus £20 VAT. Taking 20% off £120 gives £96, which is wrong.
What is the Flat Rate Scheme?
A simplification for smaller businesses: you charge normal VAT but pay HMRC a flat percentage of gross turnover instead of accounting for input VAT line by line. It suits businesses with few VATable costs and works badly for those with many.