United Kingdom VAT Calculator
How Much Is VAT in the United Kingdom?
The standard VAT rate in the United Kingdom is 20% in 2026. Other rates: 5% — Domestic fuel and power, children's car seats, mobility aids for older people, certain residential conversions and renovations; 0% — Most food, children's clothing and footwear, books, newspapers and e-publications, public passenger transport, new-build homes, women's sanitary products, installed energy-saving materials. Standard VAT/GST rates worldwide range from around 5% to 27%.
How to calculate United Kingdom VAT
To add 20% VAT to a net (tax-exclusive) price, multiply it by 1.2. To remove VAT from a gross (tax-inclusive) price, divide it by 1.2.
- Add VAT: GBP 100 net × 1.2 = GBP 120 gross (that is GBP 20 of VAT)
- Remove VAT: GBP 120 gross ÷ 1.2 = GBP 100 net (that is GBP 20 of VAT)
Use the United Kingdom VAT calculator above for any amount, or compare the United Kingdom with every other country in our VAT rates by country table.
United Kingdom VAT Rates Overview
Every VAT rate currently in force in the United Kingdom
Current VAT Rates (2026)
| Rate type | Rate | Applies to |
|---|---|---|
| Standard rate | 20% | Most goods and services, including restaurant meals, hot takeaway food, alcohol and private school fees (since 2025) |
| Reduced rate | 5% | Domestic fuel and power, children's car seats, mobility aids for older people, certain residential conversions and renovations |
| Zero rate | 0% | Most food, children's clothing and footwear, books, newspapers and e-publications, public passenger transport, new-build homes, women's sanitary products, installed energy-saving materials |
VAT History and Local Rules in the United Kingdom
How the rates got here, and country-specific points to watch
Key VAT milestones
- 2025: VAT applied at 20% to private school fees from 1 January 2025; UK announced mandatory e-invoicing from April 2029
- 2024: Registration threshold raised from GBP 85,000 to GBP 90,000
- 2021: Brexit: new rules for EU trade, Northern Ireland Protocol, and end of tourist VAT refunds in Great Britain
- 2011: Standard rate raised from 17.5% to 20% on 4 January
- 1991: Standard rate raised from 15% to 17.5%
- 1973: VAT introduced at 10%, replacing purchase tax, on joining the EEC
Is the VAT rate the same everywhere in the United Kingdom?
The same rates apply across the UK, but Northern Ireland follows EU VAT rules for goods under the Windsor Framework. The Isle of Man shares the UK VAT area, while Jersey, Guernsey and Gibraltar are outside UK VAT.
Good to know
Food is a common confusion: most groceries are zero-rated, but confectionery, crisps, soft drinks, alcohol, hot takeaway food and restaurant meals are standard-rated at 20%.
Small businesses can use the Flat Rate Scheme (turnover up to GBP 150,000) or cash accounting (up to GBP 1.35 million).
Mandatory e-invoicing for all VAT invoices between businesses is due from 1 April 2029.
Zero-Rated and Exempt Supplies in the United Kingdom
The difference matters: zero-rating keeps input-VAT recovery, exemption does not
Zero-rated supplies (0%)
VAT is charged at 0%, but the seller can still recover input VAT on related costs:
- Most unprocessed and cold food
- Children's clothing and footwear
- Books, newspapers and e-publications
- Public passenger transport
- Construction and sale of new homes
- Women's sanitary products
- Prescription medicines
- Exports of goods
VAT-exempt supplies
No VAT is charged, and the seller generally cannot recover input VAT on related costs:
- Financial services and insurance
- Most healthcare and medical services
- Education by eligible bodies (not private schools since 2025)
- Residential letting and sale of existing homes
- Betting and gaming
- Royal Mail universal postal services
United Kingdom VAT Registration & Compliance
Key facts for businesses registering for and reporting VAT in the United Kingdom.
| Local name | Value Added Tax (VAT) |
|---|---|
| VAT number format | GB + 9 digits (e.g. GB123456789); XI prefix for Northern Ireland goods trade with the EU |
| Registration threshold | GBP 90,000 taxable turnover in any rolling 12 months (or expected in the next 30 days); deregistration threshold GBP 88,000 |
| Non-resident businesses | Non-established taxable persons have no threshold and must register from their first UK taxable supply |
| Filing frequency | Usually quarterly; monthly or annual accounting available. All VAT-registered businesses must use Making Tax Digital compatible software |
| Filing and payment deadline | 1 calendar month and 7 days after the end of the VAT period (return and payment) |
| E-invoicing / reporting | No mandate in 2026; mandatory B2B and B2G e-invoicing confirmed from 1 April 2029 |
| Tax authority | HM Revenue & Customs (HMRC) |
Thresholds, deadlines and e-invoicing rules are revised regularly. Always confirm current requirements with HM Revenue & Customs (HMRC) before relying on them.
Cross-Border Sales and Refunds in the United Kingdom
Selling into the country from abroad, and getting VAT back
Cross-border rules
Digital services and e-commerce: Overseas sellers of digital services to UK consumers must register for UK VAT from the first sale (no threshold) and charge 20%; there is no OSS-style scheme after Brexit.
Tourist VAT refunds: No tourist VAT refund scheme in Great Britain since 1 January 2021; visitors can only avoid VAT by having goods shipped directly abroad by the retailer.
For the general rules, see the reverse charge mechanism, VAT on digital services, VAT invoice requirements and VAT refunds for tourists and businesses.
Compare VAT Rates
VAT rates in neighboring and similar economies
Nearby Countries
🇨🇭 Switzerland
Standard Rate: 8.1%
🇳🇴 Norway
Standard Rate: 25%
🇮🇸 Iceland
Standard Rate: 24%
🇷🇸 Serbia
Standard Rate: 20%
Frequently Asked Questions
Common questions about VAT in the United Kingdom
What is the current VAT rate in the United Kingdom?
The standard VAT rate in the United Kingdom is 20% in 2026. Other rates in force: 5% (reduced rate), 0% (zero rate). See the rates table above for exactly what each rate covers.
How do I calculate VAT in the United Kingdom?
To add 20% VAT, multiply the net price by 1.2. To remove it from a VAT-inclusive price, divide by 1.2; the difference is the VAT. The calculator at the top of this page does both.
What is the VAT threshold in the UK in 2026?
You must register for VAT if taxable turnover exceeds GBP 90,000 in any rolling 12-month period. Overseas businesses without a UK establishment must register from their first taxable sale.
Is there VAT on food in the UK?
Most basic food is zero-rated. Restaurant meals, hot takeaway food, confectionery, crisps, soft drinks and alcohol are charged at the standard 20% rate.
Can tourists claim VAT back in the UK?
No. Tax-free shopping for visitors in Great Britain ended on 1 January 2021. Visitors can only buy VAT-free if the retailer ships the goods directly overseas.
Sources
Official and professional references used for this page
Where these figures come from
Last reviewed on 27 September 2026.