United Kingdom VAT rates in 2026
| Standard | 20% |
|---|---|
| Reduced | 5% |
- A 0% zero rate applies to most food, children's clothes and books.
- Domestic electricity in Great Britain (not Northern Ireland) is temporarily at 0% from 1 October 2026 to 31 March 2027.
How to calculate VAT in United Kingdom
To add tax, multiply the price before tax by 20% and add it on. To find the price before tax inside a total, divide the total by 1.2. Taking 20% off the total gives the wrong answer, because the tax was charged on the smaller pre-tax price.
Tax = Price × 20 ÷ 100 Price before tax = Total ÷ 1.2
| Price before tax | £250.00 |
|---|---|
| VAT at 20% | £50.00 |
| Total | £300.00 |
| A total of £600.00 includes tax of | £100.00 |
| …so the price before tax was | £500.00 |
United Kingdom VAT on common amounts
At 20%, this is the tax and the total on everyday prices.
| Price before tax | Tax | Total |
|---|---|---|
| £10.00 | £2.00 | £12.00 |
| £20.00 | £4.00 | £24.00 |
| £50.00 | £10.00 | £60.00 |
| £100.00 | £20.00 | £120.00 |
| £250.00 | £50.00 | £300.00 |
| £500.00 | £100.00 | £600.00 |
| £1,000.00 | £200.00 | £1,200.00 |
| £5,000.00 | £1,000.00 | £6,000.00 |
Standard and reduced VAT rates in United Kingdom
Most goods and services in United Kingdom are taxed at the 20% standard rate. The reduced rates (5%) apply only to goods and services that United Kingdom's law lists, so check which rate applies to what you sell before you invoice.
VAT on your invoices
A VAT invoice usually shows your VAT registration number, the net price, the VAT rate and amount for each line, and the gross total. Business customers use it to reclaim the VAT they paid. Our invoice generator adds the tax line for you.