VAT rates in the United Kingdom
| Rate | Type | Used for, among others |
|---|---|---|
| 20% | Standard | Most goods and services |
| 5% | Reduced | home energy and children's car seats |
Rates as of October 1, 2026. Zero rates and exemptions are not listed. Which rate applies depends on the exact product, so check with the tax authority of the United Kingdom before you invoice.
The standard rate of 20% is the 22nd highest of the 30 European countries on this site, shared with 3 others. See the rates of every country to compare.
VAT on common amounts in the United Kingdom
Net amounts in GBP with the VAT and the gross total at 20%, and the gross total at the reduced rate of 5%.
| Net | VAT 20% | Gross 20% | Gross 5% |
|---|---|---|---|
| £10.00 | £2.00 | £12.00 | £10.50 |
| £20.00 | £4.00 | £24.00 | £21.00 |
| £50.00 | £10.00 | £60.00 | £52.50 |
| £100.00 | £20.00 | £120.00 | £105.00 |
| £250.00 | £50.00 | £300.00 | £262.50 |
| £500.00 | £100.00 | £600.00 | £525.00 |
| £1,000.00 | £200.00 | £1,200.00 | £1,050.00 |
| £5,000.00 | £1,000.00 | £6,000.00 | £5,250.00 |
Taking VAT out of a price in the United Kingdom
Divide the gross price by 1 plus the rate. A price of £120.00 including 20% VAT is £120.00 ÷ 1.2 = £100.00 net, so the VAT is £20.00. Taking 20% off £120.00 would give £96.00, which is too low, because the VAT was charged on the net price.
United Kingdom compared with its neighbors
Sending a bill? The invoice generator lists net, VAT and gross for you, and the profit margin calculator shows what is left once VAT is out of the price.
Frequently asked questions
What is the VAT rate in the United Kingdom?
The standard VAT rate is 20%. Reduced rates of 5% apply to certain goods and services. These are the rates as of October 1, 2026.
How do I remove 20% VAT from a price?
Divide the gross price by 1.2. For example, £120.00 including VAT is £100.00 before VAT, so the VAT is £20.00.
What is VAT called in the United Kingdom?
Simply VAT, short for value added tax. On invoices it appears with the rate next to it, for example "20%", and the net amount, the tax and the gross total are listed separately.