VAT & Sales Tax Calculator

Calculate VAT, GST, HST and sales tax for UK, USA, Canada, Australia and UAE. Add or remove tax instantly across GBP, USD, CAD, AUD and AED.

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UK VAT is 20%, UAE VAT is 5%, US sales tax varies by state (typically 4-10%).

Select your country and enter any amount to calculate tax instantly.

Country / Region

VAT Rate

Standard (20%)Most goods & services

Reduced (5%)Energy, child car seats

Zero (0%)Food, books, children's clothing

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Add VAT to amount

Remove VAT from amount

Quick amounts

Net Amount (excl. VAT)

United Kingdom VAT Rates

Standard (20%): Most goods & services
Reduced (5%): Energy, child car seats
Zero (0%): Food, books, children's clothing

General information only. This calculator and the reference tables below are not tax, legal, or accounting advice. Rates and thresholds change. Verify current figures with HMRC (UK), the CRA (Canada), the ATO (Australia), the UAE Federal Tax Authority, your state's department of revenue (USA), or a qualified adviser before relying on these numbers for filing, invoicing, or pricing decisions.

What this calculator does

Compare VAT, GST and sales tax scenarios across several jurisdictions, with clear formulas and visible assumptions. Add or remove tax in either direction, switch between UK, USA, Canada, Australia and UAE rates, and use the reference tables below to check whether a specific item is standard, reduced, zero-rated, exempt, or outside the scope of VAT.

UK VAT at a Glance

Pre-calculated 20% VAT for common amounts. Bookmark this page for instant reference.

Adding 20% VAT

Net Amount	VAT (20%)	Gross Amount
£50	£10	£60
£100	£20	£120
£250	£50	£300
£500	£100	£600
£750	£150	£900
£1,000	£200	£1,200
£2,000	£400	£2,400
£2,500	£500	£3,000
£5,000	£1,000	£6,000
£10,000	£2,000	£12,000
£25,000	£5,000	£30,000
£50,000	£10,000	£60,000

Removing 20% VAT

Gross Amount	VAT (20%)	Net Amount
£60	£10	£50
£120	£20	£100
£300	£50	£250
£600	£100	£500
£1,200	£200	£1,000
£2,400	£400	£2,000
£5,000	£833.33	£4,166.67
£10,000	£1,666.67	£8,333.33
£25,000	£4,166.67	£20,833.33
£50,000	£8,333.33	£41,666.67

UK VAT Rates Explained

The UK has four VAT categories. Understanding the difference, especially between zero-rated and exempt, is crucial for businesses.

Rate	Percentage	What It Covers	Examples
Standard	20%	Most goods and services	Electronics, furniture, adult clothing, restaurant meals, professional services, petrol
Reduced	5%	Essential services with social purpose	Domestic gas and electricity, child car seats, mobility aids for those over 60, contraceptives, nicotine patches and gum
Zero-rated	0%	Essential goods, VAT registered but charge 0%	Most food, children's clothing & shoes, books & newspapers, public transport, prescription medicines
Exempt	N/A	Outside the VAT system entirely	Financial services, insurance, education, health services, burial/cremation, postal services

Zero-Rated vs Exempt: The Critical Difference

This is the single most confused VAT concept in the UK. Zero-rated means the business IS VAT-registered, charges 0% to customers, and CAN reclaim VAT paid on its own purchases (input VAT). Exempt means the business does NOT charge VAT and CANNOT reclaim VAT on related purchases.

This distinction matters hugely for profitability. Consider a children's bookshop (zero-rated) versus a private tutor (exempt). Both buy supplies costing £10,000 + £2,000 VAT per year. The bookshop reclaims the £2,000 from HMRC. The tutor absorbs it as a cost. Over five years, that's £10,000 the tutor loses that the bookshop doesn't. If you're starting a business, understanding which category you fall into should be one of your first financial decisions.

Is There VAT on...?

Search 50+ common items to check their UK VAT rate at a glance.

Item	VAT Rate	Notes
Groceries (most food)	0%	Basic food items from supermarkets
Restaurant meals (dine-in)	20%	Includes service charge
Takeaway hot food	20%	Fish and chips, hot pizza, etc.
Takeaway cold food	0%	Sandwiches, salads (not heated)
Chocolate & sweets	20%	Counted as confectionery, not food
Crisps & savoury snacks	20%	The famous 'Jaffa Cake' ruling applies
Bottled water	20%	Mineral, table and bottled drinking water are standard rated; tap water is zero-rated
Soft drinks (restaurant)	20%	Served as catering
Alcohol	20%	Always standard rate
Coffee beans/ground coffee	0%	Grocery item
Coffee shop drinks	20%	Catering/served hot
Baby food & formula	0%	Zero-rated as food
Ice cream	20%	Confectionery

Item	VAT Rate	Notes
Gas & electricity (domestic)	5%	Reduced rate for household energy
Gas & electricity (business)	20%	Standard rate for commercial use
Council tax	Exempt	Not a VAT-able supply
Home insurance	Exempt	Insurance is exempt
Building work (new build)	0%	New residential construction
Building work (renovation)	20%	Standard rate unless qualifying conversion
Home insulation (qualifying installation)	0%	Temporary zero rate for energy-saving materials installed in residential property in Great Britain, in effect to 31 March 2027 (then reverts to 5%); Northern Ireland rules may differ
Solar panels (qualifying installation)	0%	Same temporary energy-saving materials zero rate, in effect for GB residential installations to 31 March 2027; Northern Ireland rules may differ
Rent (residential)	Exempt	Unless landlord opts to tax
Rent (commercial)	Exempt/20%	Landlord can opt to charge VAT

Item	VAT Rate	Notes
Adult clothing	20%	Standard rate
Children's clothing	0%	Designed for children under 14, sized within HMRC's published measurements; oversized 'children's' clothing aimed at teenagers may not qualify
Children's shoes	0%	HMRC sets separate maximum sizes for boys, girls' court shoes, other girls' shoes, and unisex footwear; oversized styles aimed at teenagers may be standard rated
Adult shoes	20%	Standard rate
Books (printed)	0%	Zero-rated
E-books	0%	Zero-rated since May 2020
Newspapers & magazines	0%	Both print and digital
Nappies	0%	Zero-rated baby products
Prescription glasses	20%	Frames and lenses are standard rated; the optician's dispensing service is exempt, so a prescription dispense is mixed and must be apportioned
Sunglasses	20%	Not a medical device

Item	VAT Rate	Notes
Public transport (bus, train, tube)	0%	Zero-rated
Flights (domestic UK)	0%	Zero-rated passenger transport
Flights (international)	0%	Zero-rated
Taxi fares	20%	Unless driver is below VAT threshold
Petrol/diesel	20%	Standard rate on fuel duty too
Car purchase (new)	20%	Standard rate
Car insurance	Exempt	Insurance is exempt
MOT test	Outside scope	The statutory MOT fee charged by an approved testing station is outside the scope of VAT; any garage mark-up over the statutory fee is standard rated
Bicycle	20%	(0% through Cycle to Work scheme salary sacrifice)

Item	VAT Rate	Notes
NHS prescriptions	0%	Medicines dispensed by a registered pharmacist against a prescription are zero-rated
Over-the-counter medicines	20%	Standard rated unless dispensed against a prescription by a registered pharmacist
Private healthcare	Exempt	Medical services are exempt
Dental treatment (private)	Exempt	Medical services are exempt
Gym membership	20%	Standard rate
Private school fees	20%	Standard rated since 1 January 2025 (previously exempt) following the UK government policy change for private schools
University tuition	Exempt	Education by an eligible body is exempt
Professional training	20%	Unless from an eligible body
Vitamins & supplements	20%	Not classed as medicine

Values reflect HMRC guidance current at last review (April 2026). Some items have exceptions depending on context, always check gov.uk for edge cases.

VAT Registration Guide

When and why to register, the key thresholds, and the pros and cons of voluntary registration.

Threshold	Amount	What It Means
VAT registration (mandatory)	£90,000	Taxable turnover (excluding VAT) exceeds £90,000 in any 12-month rolling period
VAT registration (30-day rule)	£90,000	You expect taxable turnover (excluding VAT) to exceed £90,000 in the next 30 days alone
VAT deregistration	£88,000	Can apply to deregister if taxable turnover (excluding VAT) drops below this
Flat Rate Scheme eligibility	£150,000 or less (excl. VAT)	Taxable turnover £150,000 or less excluding VAT in the next 12 months
Flat Rate Scheme exit	Over £230,000 (incl. VAT)	Must leave the scheme when total business income exceeds £230,000 including VAT
Making Tax Digital (MTD)	All VAT registered	Must keep digital records and submit returns via compatible software

✓ Pros of Voluntary Registration

Reclaim VAT on qualifying business purchases (input VAT)
Appear more established to VAT-registered B2B clients
Required if your VAT-registered B2B clients want to reclaim VAT on what they buy from you
Pre-registration VAT can usually be reclaimed: goods bought up to 4 years before registration if still held or used to make goods still held; services received up to 6 months before registration

✗ Cons of Voluntary Registration

Must charge VAT, can make you 20% more expensive to non-VAT consumers
Admin burden: quarterly VAT returns (even if nil)
Making Tax Digital compliance, need compatible software
Record-keeping requirements increase significantly

The 30-Day Rule Warning

If you land a single large contract that will push your turnover over £90,000 within the next 30 days, you must register immediately, not at the end of the tax year or quarter. Many businesses get caught by this. Late registration means you'll owe HMRC backdated VAT from the date you should have registered, even if you didn't charge your customers.

VAT Flat Rate Scheme by Business Type

The Flat Rate Scheme lets eligible businesses (taxable turnover £150,000 or less excluding VAT in the next 12 months) pay a fixed percentage of gross turnover instead of tracking individual VAT on every purchase. You must leave the scheme once total business income exceeds £230,000 including VAT. Here are the rates for the 20 most common sectors.

Business Type	Flat Rate %	First Year Rate (−1%)
Accountancy or book-keeping	14.5%	13.5%
Advertising	11%	10%
Computer and IT consultancy	14.5%	13.5%
Computer repair	10.5%	9.5%
Estate agency or property management	12%	11%
Film, radio, television or video	13%	12%
Hairdressing or other beauty treatment	13%	12%
Journalism or photography	11%	10%
Lawyer or legal services	14.5%	13.5%
Management consultancy	14%	13%
Pubs	6.5%	5.5%
Real estate	14%	13%
Restaurants or cafes	12.5%	11.5%
Retail (food)	4%	3%
Retail (not food, vehicles, or fuel)	7.5%	6.5%
Secretarial services	13%	12%
Social worker	11%	10%
Transport or storage	10%	9%
Veterinary medicine	11%	10%
Limited cost trader	16.5%	15.5%

⚠️ The Limited Cost Trader Rule

If your spending on relevant goods (not services), including VAT, is either less than 2% of your VAT-inclusive turnover in a VAT period, or less than £1,000 a year (when the period is 12 months), HMRC treats you as a "limited cost trader" and you must use the 16.5% flat rate. This often makes the Flat Rate Scheme not worth it for consultants, freelancers, and service-based businesses who buy very few physical goods.

Worked example, IT consultant earning £80,000/year:

• FRS (limited cost trader): £80,000 × 16.5% = £13,200 VAT payable
• Standard VAT: VAT collected: £16,000. Input VAT reclaimed (software, equipment): ~£1,500. Net payable: £14,500
• Difference: FRS saves £1,300/year, but only if you're NOT a limited cost trader. At 16.5%, FRS costs MORE.

International VAT & GST Rates Compared

How the UK's 20% VAT compares globally. Rates sorted from highest to lowest.

Country	Standard Rate	Reduced Rate(s)	Notes
🇭🇺Hungary	27%	5%, 18%	Highest in the EU
🇫🇮Finland	25.5%	10%, 13.5%	Standard rate raised from 24% to 25.5% on 1 September 2024; reduced rate lowered from 14% to 13.5% on 1 January 2026
🇩🇰Denmark	25%	None	No reduced rate
🇸🇪Sweden	25%	6%, 12%
🇳🇴Norway	25%	12%, 15%	Not EU, but EEA
🇮🇪Ireland	23%	9%, 13.5%
🇵🇱Poland	23%	5%, 8%
🇮🇹Italy	22%	4%, 5%, 10%
🇪🇸Spain	21%	4%, 10%
🇳🇱Netherlands	21%	9%
🇫🇷France	20%	2.1%, 5.5%, 10%
🇬🇧United Kingdom	20%	5%	Mid-range
🇩🇪Germany	19%	7%
🇯🇵Japan	10%	8% (food)
🇦🇺Australia	10% (GST)	None	Goods & Services Tax
🇨🇭Switzerland	8.1%	2.6%, 3.8%	Lowest in Europe
🇨🇦Canada	5% (GST)	Varies by province	+ Provincial Sales Tax in some provinces
🇮🇳India	5-28% (GST)	Multiple slabs	Complex multi-rate system
🇦🇪UAE	5%	None	One of the lowest globally
🇺🇸USA	Varies by state	N/A	No federal VAT, sales tax 0-10%

Rates current at last review (April 2026). Some countries have additional local or state-level taxes not shown here.

VAT Formulas & Common Mistakes

Add VAT

Net × 1.20 = Gross

£100 × 1.20 = £120

Formula: Net × (1 + rate)

Remove VAT

Gross ÷ 1.20 = Net

£120 ÷ 1.20 = £100

Formula: Gross ÷ (1 + rate)

Find VAT Amount

Gross × (20/120)

£120 × 20/120 = £20

Or: Gross − (Gross ÷ 1.20)

⚠️ The #1 VAT Calculation Mistake

Do NOT calculate "20% of the gross" to remove VAT. 20% of £120 = £24, WRONG. The correct calculation is £120 ÷ 1.20 = £100, so VAT = £20. This mistake costs businesses real money on every invoice. The difference is small on single transactions but compounds across thousands of invoices per year.

6 Common VAT Mistakes

1Subtracting 20% instead of dividing by 1.2

£120 minus 20% = £96 (wrong). £120 ÷ 1.2 = £100 (correct). The difference adds up on invoices.

2Missing the registration deadline

Two HMRC deadlines apply. If you exceeded £90,000 over any 12-month rolling period, you must register by the end of the month following the month you went over. If you expect to exceed £90,000 in the next 30 days alone, you must register by the end of that 30-day window. Late registration means you owe HMRC backdated VAT from the date you should have registered.

3Charging VAT on exempt items

If you charge VAT on an exempt supply, your customer can't reclaim it. You still have to pay it to HMRC. Everyone loses.

4Not reclaiming pre-registration VAT

Goods bought up to 4 years before registration can usually be reclaimed only if they are still held at registration, or were used to make goods you still hold. Services received up to 6 months before registration can usually be reclaimed if they relate to your VAT-taxable business. Many businesses miss these claims by assuming they don't qualify.

5Confusing zero-rated with exempt

Zero-rated businesses can reclaim input VAT. Exempt businesses cannot. This single distinction can affect profitability by thousands per year.

6Ignoring the limited cost trader rule

Many consultants join the Flat Rate Scheme thinking they'll save money, then find out they're classified as 'limited cost traders' at 16.5%, which is worse than standard VAT accounting.

UK VAT Rate History

How the UK standard VAT rate has changed since its introduction in 1973. The current 20% rate has been in effect since January 2011, the longest period without a change in VAT history.

Year	Standard Rate	What Changed
1973	10%	VAT introduced when UK joined the EEC (1 April 1973)
1974	8%	Reduced by Labour government. 25% luxury rate added
1979	15%	Thatcher government unified rates, luxury rate abolished
1991	17.5%	Increased by Norman Lamont to fund poll tax abolition
2008	15%	Temporary cut during financial crisis (1 Dec 2008)
2010	17.5%	Returned to pre-crisis rate (1 Jan 2010)
2011	20%	Increased by George Osborne. Current rate ever since

1973

10%

1974

1979

15%

1991

17.5%

2008

15%

2010

17.5%

2011

20%

Part of a workflow

UK Freelancer Workflow

Pricing → Invoicing → VAT → Tax → Take-home. Six steps, every tool free.

How to use this tool

Select your country and the applicable VAT rate

Enter an amount and choose to add or remove VAT

View net, VAT, and gross amounts instantly

Common uses

Calculating VAT on invoices for UK, UAE and Australian businesses
Working out sales tax on purchases when shopping in the US
Calculating Canadian GST, HST, PST and QST by province
Reverse-calculating the net price from a GST/VAT-inclusive amount
Checking the correct tax rate for reduced-rate or zero-rated goods
Preparing quotes with accurate tax breakdowns for clients across GBP, USD, CAD and AUD

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Frequently Asked Questions

What is the current UK VAT rate?

The UK standard VAT rate is 20%. There's also a reduced rate of 5% for home energy, child car seats, and mobility aids, plus a zero rate (0%) for food, children's clothing, and books.

How do I add VAT to a price?

To add 20% VAT, multiply the net amount by 1.2. For example, £100 + VAT = £100 × 1.2 = £120. Our calculator does this instantly for you.

How do I remove VAT from a price?

To remove 20% VAT, divide the gross amount by 1.2. For example, £120 ÷ 1.2 = £100 net. Do NOT subtract 20%, that gives the wrong answer (£96 instead of £100).

Do I need to register for VAT in the UK?

You must register for VAT if your taxable turnover (excluding VAT) exceeds £90,000 in any rolling 12-month period, or if you expect it to exceed £90,000 in the next 30 days alone. The threshold is the figure published by HMRC at last review (April 2026); confirm on gov.uk before filing. You can voluntarily register below the threshold if it benefits your business.

What's the difference between zero-rated and exempt?

Zero-rated items are part of the VAT system, businesses charge 0% but CAN reclaim input VAT. Exempt items are outside the VAT system, businesses don't charge VAT and CANNOT reclaim input VAT on related purchases.

What is the VAT Flat Rate Scheme?

The Flat Rate Scheme lets businesses with turnover under £150,000 pay a fixed percentage of gross turnover instead of tracking VAT on every transaction. The percentage varies by business type (4% to 16.5%).

Is there VAT on food in the UK?

Most basic food items are zero-rated (0% VAT). However, restaurant meals, takeaway hot food, confectionery (chocolate, sweets, crisps), and ice cream are all charged at 20%.

Is there VAT on children's clothing?

Children's clothing and shoes (designed for under 14s) are zero-rated at 0% VAT. Adult clothing and shoes are charged at 20%.

How much VAT do I pay on energy bills?

Domestic gas and electricity are charged at the reduced rate of 5% VAT. Business energy is charged at the standard 20% rate.

Can I reclaim VAT before I was registered?

Often yes, with two conditions. Goods bought up to 4 years before registration can usually be reclaimed only if they are still held at registration, or were used to make goods you still hold. Services received up to 6 months before registration can usually be reclaimed if they relate to your VAT-taxable business. HMRC has more rules for partial use; check gov.uk before claiming.

Results are for general informational purposes only and should be checked before use. They are not professional advice. See our Disclaimer and Terms of Service.