● UK VAT · 20% standard · 5% reduced

VAT Calculator UK

Q: What is the reduced VAT rate?

The reduced rate of VAT is 5%. It applies to certain goods and services such as domestic energy (gas and electricity for the home), children's car seats and some home energy-saving materials.

Add 20% VAT to £100 net and you get £120 gross — £20 of that is VAT. Enter any amount below to add or remove UK VAT at the 20% standard or 5% reduced rate, with the net, VAT and gross figures shown side by side.

➕ Add or ➖ remove VAT 🧾 20% & 5% rates 🏛️ GOV.UK VAT rates

Add or remove VAT

UK VAT · standard 20% or reduced 5%

Mode

Net amount (excluding VAT)

VAT rate

UK VAT rates in 2026

VAT (Value Added Tax) is a tax added to the price of most goods and services sold in the UK. There are three rates, and which one applies depends on what is being sold.

Rate	Percentage	Applies to (examples)
Standard rate	20%	Most goods and services
Reduced rate	5%	Domestic energy, children's car seats, home energy-saving materials
Zero rate	0%	Most food, children's clothes, books and newspapers

The quick maths. To add 20% VAT, multiply the net price by 1.2. To remove 20% VAT from a gross price, divide by 1.2 — the result is the net price, and the difference is the VAT.

Worked examples

Two everyday VAT sums, shown step by step:

Adding 20% to £100 net: VAT = £100 × 0.20 = £20; gross = £100 × 1.2 = £120.
Removing 20% from £250 gross: net = £250 ÷ 1.2 = £208.33; VAT = £250 − £208.33 = £41.67.

Notice you can't simply take 20% off a gross price to find the VAT — because the 20% was added to the smaller net figure, the VAT inside a gross price is one sixth (about 16.67%) of the total.

When does the 5% reduced rate apply?

The reduced rate of 5% covers a defined list of supplies, including:

Domestic energy — gas and electricity for your home.
Children's car seats and booster seats.
Mobility aids for older people and certain energy-saving materials.

Switch the rate selector above to 5% to model any of these. Always check the full list on GOV.UK, as some supplies have conditions attached.

VAT FAQs

How do I add 20% VAT to a price?

Multiply the net (VAT-exclusive) price by 1.2. For example, £100 × 1.2 = £120 gross, of which £20 is VAT. To find just the VAT, multiply the net price by 0.20.

How do I work out the VAT in a gross price?

Divide the gross (VAT-inclusive) price by 1.2 to get the net amount, then subtract that from the gross to find the VAT. For example £250 ÷ 1.2 = £208.33 net, so the VAT is £41.67.

What is the reduced VAT rate?

The reduced rate is 5%. It applies to certain supplies such as domestic energy (home gas and electricity), children's car seats and some home energy-saving materials. See GOV.UK VAT rates.

Net amount (excl. VAT)	£0
VAT	£0
Gross amount (incl. VAT)	£0