Updated for 2026/27 · Based on HMRC Rates · Confirmed Statutory Values

VAT Calculator UK (2026/27)

Updated for 2026/27 tax year: Figures verified against GOV.UK — last verified 30 September 2026. Read our full calculation methodology & statutory sources →

UK Value Added Tax (VAT) is a consumption tax charged on taxable goods and services. The standard VAT rate in 2026/27 is 20%, the reduced rate is 5%, and certain essential items are zero-rated (0%). To remove 20% VAT from an inclusive price of £1,200, divide by 1.2 to find the net price of £1,000.00 and VAT amount of £200.00.

Key 2026/27 Statutory Facts

  • Standard VAT rate is 20% across the UK for most commercial goods and services. [Source: GOV.UK]
  • Reduced VAT rate of 5% applies to domestic energy, home insulation, and child safety car seats. [Source: GOV.UK]
  • Zero rate (0%) applies to most basic groceries, books, children’s clothing, and new residential building works. [Source: GOV.UK]
  • Mandatory VAT registration threshold is £90,000 rolling 12-month taxable turnover (effective 1 April 2024 and maintained for 2026/27). [Source: GOV.UK]
  • VAT deregistration threshold is £88,000 taxable turnover (effective 1 April 2024 and maintained for 2026/27). [Source: GOV.UK]

How VAT Calculations Work: Key Formulas

Depending on whether your pricing is net (exclusive of VAT) or gross (inclusive of VAT), apply the following standard mathematical formulas:

  • To Add 20% Standard VAT: Gross = Net × 1.20 | VAT Amount = Net × 0.20
  • To Remove 20% Standard VAT: Net = Gross ÷ 1.20 | VAT Amount = Gross ÷ 6
  • To Add 5% Reduced VAT: Gross = Net × 1.05 | VAT Amount = Net × 0.05
  • To Remove 5% Reduced VAT: Net = Gross ÷ 1.05 | VAT Amount = Gross × (1 – 1/1.05)

Worked VAT Example: £1,200 Gross Item at 20%

If an invoice specifies a total inclusive amount of £1,200.00 at the standard 20% rate:

  • Net Price (ex-VAT) = £1,200.00 ÷ 1.2 = £1,000.00
  • VAT Amount = £1,200.00 – £1,000.00 (or £1,200 ÷ 6) = £200.00

Methodology & Assumptions

Our 2026/27 calculations strictly apply primary legislation published by HM Revenue & Customs. Specific assumptions include:

  • Calculations reflect the 2026/27 tax year (6 April 2026 to 5 April 2027).
  • Standard tax codes 1257L (England, Wales, NI) and S1257L (Scotland) are assumed unless adjusted.
  • Class 1 National Insurance thresholds are annualized; in actual UK payroll, NI is assessed on a non-cumulative pay-period basis.
  • Special allowances such as Blind Person’s Allowance (£3,070) or Marriage Allowance (£1,260) are excluded from baseline calculations unless selected.

Frequently Asked Questions (2026/27)

How do you calculate 20% VAT on a net price?

To calculate 20% VAT on an exclusive (net) price, multiply the net amount by 0.20 to get the VAT figure, or multiply by 1.20 to obtain the total gross price. For example, a £500.00 net service incurs £100.00 VAT, totaling £600.00 gross.

How do you remove 20% VAT from a gross total price?

To extract 20% VAT from an inclusive (gross) total, divide the gross price by 1.20 to determine the net price, then subtract the net price from the gross total. For instance, £1,200.00 inclusive of VAT divided by 1.20 produces a net price of £1,000.00 and £200.00 in VAT.

Is VAT still 20% in the UK for 2026/27?

Yes. The UK standard VAT rate remains confirmed at 20%, where it has stood since January 2011. The reduced VAT rate of 5% applies to qualifying domestic fuel and energy-saving materials, while essential groceries, books, and children’s clothing remain zero-rated (0%).

How much VAT do you pay on £400 in the UK?

If £400.00 is the net price, adding 20% VAT results in £80.00 VAT and a £480.00 gross price. If £400.00 is already VAT-inclusive (gross), dividing by 1.20 reveals a net price of £333.33 and £66.67 in extracted VAT.

How much VAT is included in £600 in the UK?

If £600.00 is a VAT-inclusive total, removing 20% VAT (dividing by 1.20) yields £500.00 net and exactly £100.00 in VAT. Conversely, adding 20% VAT to a £600.00 net price adds £120.00 VAT for a £720.00 total.

How much VAT is payable on £50,000 in the UK?

Adding 20% VAT to a net amount of £50,000.00 produces £10,000.00 VAT, making the invoice total £60,000.00 gross. If a £50,000.00 transaction is gross (VAT inclusive), it contains £8,333.33 of VAT and a net price of £41,666.67.

What is the UK VAT registration threshold in 2026/27?

The mandatory VAT registration threshold is £90,000 of taxable turnover within any rolling 12-month period, or if you anticipate your turnover will exceed £90,000 in the next 30 days alone. Businesses with taxable sales below £88,000 can apply for voluntary deregistration.

Can individual visitors or tourists reclaim UK VAT?

No. The UK government terminated the tax-free retail shopping scheme for international tourists, meaning visitors to Great Britain cannot claim in-store VAT refunds on personal goods taken home in their luggage.

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