VAT Calculator
Calculate VAT for the UK and all 27 EU countries. Select whether your starting amount already includes VAT or excludes it. Override the rate for reduced-rate items.
| Net Amount (excl. VAT) | £100.00 |
| VAT Amount (20%) | £20.00 |
| Gross Amount (incl. VAT) | £120.00 |
Note: United Kingdom also has a reduced rate of 5% for qualifying goods and services (e.g., food, children's clothing). Override the rate above to use it.
What Is VAT?
VAT (Value Added Tax) is a consumption tax applied to the sale of goods and services. Unlike a sales tax (which is added only at the final point of sale), VAT is collected at every stage of the supply chain. Each business in the chain charges VAT on its sales but can reclaim the VAT it paid on its purchases, so the total tax is only borne by the final consumer.
The UK introduced VAT in 1973 when it joined the European Economic Community, replacing Purchase Tax. After Brexit, the UK now operates its own VAT system independently of EU rules, though the two systems remain broadly similar.
UK VAT Rates (2025)
| Rate | % | Examples |
|---|---|---|
| Standard | 20% | Most goods and services, electronics, clothing (adult), restaurant meals, professional services |
| Reduced | 5% | Domestic fuel and power, children's car seats, some energy-saving products, contraceptive products |
| Zero | 0% | Most food (unprepared), children's clothing and footwear, books and newspapers, prescription drugs, most public transport |
| Exempt | N/A | Insurance, financial services, education, health services, letting residential property |
EU VAT Rates (2025)
Each EU member state sets its own VAT rates, subject to a minimum standard rate of 15% set by EU law. Rates vary considerably across the bloc:
| Country | Standard Rate | Reduced Rate |
|---|---|---|
| Luxembourg | 17% | 8% |
| Malta | 18% | 5% |
| Cyprus | 19% | 5% |
| Germany | 19% | 7% |
| Romania | 19% | 9% |
| Austria | 20% | 10% |
| Bulgaria | 20% | 9% |
| France | 20% | 5.5% |
| Slovakia | 20% | 10% |
| UK | 20% | 5% |
| Belgium | 21% | 6% |
| Czech Republic | 21% | 12% |
| Latvia | 21% | 12% |
| Lithuania | 21% | 9% |
| Netherlands | 21% | 9% |
| Spain | 21% | 10% |
| Italy | 22% | 10% |
| Estonia | 22% | 9% |
| Slovenia | 22% | 9.5% |
| Ireland | 23% | 13.5% |
| Poland | 23% | 8% |
| Portugal | 23% | 6% |
| Greece | 24% | 13% |
| Croatia | 25% | 5% |
| Denmark | 25% | 0% |
| Sweden | 25% | 12% |
| Finland | 25.5% | 10% |
| Hungary | 27% | 5% |
VAT Formulas
The two fundamental VAT calculations are:
Adding VAT: Gross = Net × (1 + VAT Rate)
Removing VAT: Net = Gross ÷ (1 + VAT Rate)
Example — Adding 20% UK VAT to a £100 net price:
VAT Amount = £100 × 20% = £20.00
Gross Price = £100 + £20 = £120.00
Example — Extracting 20% VAT from a £120 gross price:
Net Price = £120 ÷ 1.20 = £100.00
VAT Amount = £120 − £100 = £20.00
A common error is to calculate 20% of £120 (= £24) when trying to extract VAT. The correct answer is £20. Always divide by (1 + rate) to extract VAT, never multiply the gross price by the rate.
Frequently Asked Questions
What is VAT and who pays it?
VAT (Value Added Tax) is a consumption tax levied on goods and services at each stage of production and distribution. The end consumer ultimately bears the cost. Businesses registered for VAT collect it from their customers and remit it to the government, offsetting the VAT they paid on their own purchases (input tax). In the UK the mandatory registration threshold is £90,000 of taxable turnover in any 12-month period (2025/26).
What is the difference between VAT-exclusive and VAT-inclusive prices?
A VAT-exclusive (net) price is the price before VAT is added. A VAT-inclusive (gross) price already contains the VAT. To add VAT: Gross = Net × (1 + rate). To extract VAT: Net = Gross ÷ (1 + rate). A common mistake is calculating 20% of the gross price to find the VAT — the correct method divides by 1.2 and subtracts.
What are the UK VAT rates?
The UK has three VAT rates: Standard rate 20% (most goods and services); Reduced rate 5% (domestic energy, children's car seats, some renovation work); Zero rate 0% (most food, children's clothing, books, public transport). Some supplies are VAT exempt (insurance, financial services, education) — these are different from zero-rated because businesses making exempt supplies cannot reclaim input VAT.
How do EU VAT rates compare to the UK?
EU VAT rates range from 17% (Luxembourg) to 27% (Hungary). The EU sets a minimum standard rate of 15%. Most EU countries have standard rates between 20% and 25%. The UK left the EU VAT system after Brexit; UK businesses trading with EU customers may need to register for VAT in EU member states or use the OSS (One Stop Shop) scheme for B2C digital services.
Do I need to charge VAT on exports?
Exports of goods from the UK to outside the UK are generally zero-rated for VAT purposes. Services can be more complex — B2B services supplied to a non-UK business are generally outside the scope of UK VAT, while B2C services follow the UK place of supply rules. Always consult HMRC guidance or a tax adviser for specific cross-border situations.