UK VAT Guide & Calculator
Use our calculator to work out the Value Added Tax (VAT) for any amount in the United Kingdom. This tool allows you to easily calculate gross or net prices for any of the official UK VAT rates.
Current VAT Rates in the UK
The UK has three rates of VAT:
- Standard Rate (20%): This is the default rate applied to most goods and services.
- Reduced Rate (5%): This rate applies to some goods and services, such as home energy (gas and electricity) and children's car seats.
- Zero Rate (0%): Zero-rated goods and services are still VAT-taxable, but the rate is 0%. This includes most food items, books, newspapers, and children's clothing.
History of VAT in the UK
Value Added Tax was introduced in the United Kingdom on 1 April 1973, replacing the Purchase Tax. The standard rate was initially set at 10%. It has changed several times since, often in response to the economic climate. The most recent change to the standard rate was on 4 January 2011, when it was increased from 17.5% to the current 20%.
| Period | Standard Rate | Reduced Rate |
|---|---|---|
| From 04/01/2011 | 20% | 5% |
| From 01/01/2010 | 17.5% | 5% |
| From 01/12/2008 | 15% | 5% |
| From 01/04/1991 | 17.5% | N/A |
| From 18/06/1979 | 15% | N/A |
| From 01/04/1973 | 10% | N/A |