Add VAT to a net figure, or strip VAT out of a gross figure, at the 20% standard or 5% reduced rate. This is a quick working figure, not personalised tax advice — talk to Buzz about your VAT.
Standard-rate VAT is 20%.
This tool assumes a single VAT rate on the whole amount. It does not account for the VAT Flat Rate Scheme, partial exemption, margin schemes or mixed-rate supplies, which change how much VAT you actually owe or reclaim. Talk to Buzz for your real position.
Enter the amount
Enter an amount, then click Calculate to see the net, VAT and gross figures.
The basics
How VAT works, in plain English
VAT (Value Added Tax) is a tax on most goods and services in the UK. If your business is VAT-registered, you add VAT to what you sell (output VAT), reclaim the VAT on what you buy (input VAT), and pay HMRC the difference — usually every quarter.
The rates. Most things are charged at the standard rate of 20%. A few — such as domestic energy, children's car seats and some home-energy-saving materials — are charged at the reduced rate of 5%. Others, like most food and children's clothing, are zero-rated (0%), and some are exempt or outside the scope of VAT entirely.
The maths. To add VAT, multiply the net figure by the rate (net × 1.20 for standard-rate gross). To remove VAT, divide the gross figure by 1 plus the rate (gross ÷ 1.20). It's the second one people get wrong — you can't just take 20% off a gross price.
UK VAT rate (2026/27)
Rate
Typical examples
Standard rate
20%
Most goods and services
Reduced rate
5%
Domestic fuel, some energy-saving materials
Zero rate
0%
Most food, books, children's clothes
You must register for VAT once your VAT-taxable turnover goes over £90,000 in a rolling 12-month period (or you expect it to in the next 30 days). You can also register voluntarily below that. Source: gov.uk VAT rates and VAT registration pages, checked July 2026.
Frequently asked questions
Common VAT questions
How do I remove VAT from a price?
Divide the gross (VAT-inclusive) figure by 1.20 for standard-rate VAT. For example, £120 ÷ 1.20 = £100 net, so the VAT is £20. Taking 20% off £120 gives the wrong answer (£96) — that's the most common VAT mistake.
When do I have to register for VAT?
When your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period, or when you expect to go over it within the next 30 days. You can also register voluntarily below the threshold, which can make sense if your customers are VAT-registered businesses.
What's the VAT Flat Rate Scheme?
A simplified scheme for smaller businesses where you pay a fixed percentage of your gross turnover to HMRC instead of tracking VAT on every purchase. It can save money for some businesses and cost more for others — it's worth checking the numbers before you join. Ask Buzz whether it suits you.
Do I charge VAT to overseas customers?
It depends on what you sell, whether it's goods or services, and where the customer is. The rules changed after Brexit and again under the Windsor Framework for Northern Ireland. This is an area where getting it wrong is costly — talk to us before assuming.
Do I file VAT returns digitally now?
Yes. Making Tax Digital for VAT means VAT-registered businesses must keep digital records and file through compatible software. See our Making Tax Digital guide for what that involves.
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