United Kingdom Reverse VAT Calculator
Pre-filled with United Kingdom's standard 20% vat rate. Enter any gross total amount to calculate the net ex-tax price instantly.
Pre-filled with United Kingdom's standard VAT rate
About United Kingdom VAT
The standard Value Added Tax (VAT) rate in the United Kingdom is 20%. Governed by the Value Added Tax Act 1994 (VATA 1994) and administered by HM Revenue and Customs (HMRC), retail pricing in the UK is statutory required to be displayed inclusive of VAT, meaning the shelf price is the final amount payable.
To extract the VAT component from a gross UK receipt, businesses use the statutory "VAT Fraction." For the standard 20% rate, the VAT fraction is 1/6 (20/120). Multiplying any gross total by 1/6 isolates the exact VAT amount, while dividing by 1.20 determines the net price before tax. For the 5% reduced rate, the VAT fraction is 1/21 (5/105).
For VAT-registered UK businesses and sole traders filing quarterly returns on HMRC Making Tax Digital (MTD), separating input tax (VAT paid on business purchases, claimed in Box 4) from output tax (VAT charged on sales, recorded in Box 1) is mandatory to establish net VAT due (Box 5).
Under the UK Domestic Reverse Charge (DRC) for construction services (VATA 1994 Section 55A), standard B2B construction subcontractors do not charge VAT to VAT-registered contractors; instead, the customer accounts for the VAT directly on their own HMRC return to combat missing-trader fraud.
Tax Rates in Major United Kingdom Cities
* Consumption taxes like VAT and GST are levied strictly at the national level in United Kingdom. Municipal or city-level surcharges do not apply, so rates are completely uniform country-wide.
When to Use This Calculator in United Kingdom
HMRC VAT Return Preparation
Sole traders and VAT-registered UK businesses use this calculator to quickly back out the 20% VAT portion from expense receipts and supplier invoices, ensuring quarterly Making Tax Digital (MTD) returns are mathematically accurate.
Input Tax Reclaims (Box 4)
Easily calculate deductible input VAT on fuel, office equipment, software subscriptions, and commercial purchases.
Frequently Asked Questions: United Kingdom VAT/GST
How do I remove 20% UK VAT from a price?+
To remove the standard 20% UK VAT, divide the total inclusive price by 1.20. For example: £240.00 total paid ÷ 1.20 equals £200.00 ex-VAT price. The VAT component is exactly £40.00 (or calculated directly via the statutory VAT fraction: £240.00 × 1/6 = £40.00).
What is the VAT fraction for 20% in the UK?+
The UK VAT fraction for the standard 20% rate is 1/6 (derived from 20 / (100 + 20) = 20/120 = 1/6). To find the VAT included in any gross price, simply divide the gross amount by 6. For example, £60 gross ÷ 6 = £10 VAT, leaving £50 net.
What is the UK Domestic Reverse Charge (DRC)?+
The Domestic Reverse Charge (Section 55A VATA 1994) applies to specified supplies of construction services reported under the Construction Industry Scheme (CIS). Under the DRC, the customer—rather than the supplier—accounts for the VAT directly on their HMRC VAT return, eliminating the risk of subcontractor supply-chain fraud.
What items are zero-rated or exempt from UK VAT?+
Under UK law, most staple groceries, books, newspapers, children's clothing and footwear, and public passenger transport are zero-rated (0% VAT). Domestic electricity and gas, child car seats, and mobility aids carry a reduced 5% rate. Financial services, postal services, and residential property rentals are statutory exempt.
What is the VAT rate in London and regional cities?+
The standard VAT rate is 20% uniformly throughout the entire United Kingdom. There are no additional regional, county, or municipal sales taxes in London, Manchester, Edinburgh, Cardiff, or Belfast.