Understanding VAT in the UK (2026)
Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. Using an online VAT calculator helps businesses and consumers quickly find the price before or after tax.
| VAT Type | Rate | Typical Examples |
|---|---|---|
| Standard Rate | 20% | Most goods and services |
| Reduced Rate | 5% | Home energy, children's car seats |
| Zero Rate | 0% | Most food, children's clothes, books |
How to Calculate VAT Manually?
To add VAT to an amount, multiply the net amount by 1.20 (for 20% VAT). To remove VAT and find the original price, divide the gross amount by 1.20.
Our tool automates this process, ensuring accuracy for your invoices and accounting needs.