Standard VAT rate
20%
Applies to most taxable goods and services supplied in the UK.
Reduced VAT rate
5%
Applies to certain qualifying goods and services.
Zero VAT rate
0%
Applies to qualifying zero-rated goods and services.
Registration threshold
£90,000
Based on VAT-taxable turnover over a rolling 12-month period.
VAT Registration Threshold Checker
Enter the business’s VAT-taxable turnover for the previous rolling
12 months. Taxable turnover normally includes standard-rated,
reduced-rated and zero-rated sales, but excludes VAT-exempt sales.
Below the VAT registration threshold
Turnover is £15,000 below the £90,000 registration threshold.
Voluntary registration may still be possible.
How Is VAT Added to a Price?
When a price excludes VAT, multiply the net price by the VAT rate to
calculate the VAT amount. Add the VAT to the net price to calculate
the gross total.
VAT amount = net price × VAT rate
Gross price = net price + VAT
For example, VAT at 20% on a net price of £100 is £20, producing a
VAT-inclusive price of £120.
How Is VAT Removed From a Price?
A VAT-inclusive price should not normally be reduced by simply
subtracting 20%. The gross amount must be divided by 1.20 when the
standard 20% rate applies.
Net price = gross price ÷ (1 + VAT rate)
VAT amount = gross price − net price
For example, the VAT contained within a £120 gross price at 20% is
£20, leaving a net price of £100.
What Are the UK VAT Rates in 2026?
-
20% standard rate: applies to most taxable goods
and services.
-
5% reduced rate: applies to certain qualifying
goods and services.
-
0% zero rate: applies to qualifying goods and
services such as many food products and children’s clothing.
Zero-rated supplies remain taxable supplies even though no VAT is
charged. They are different from VAT-exempt supplies.
When Must a Business Register for VAT?
A business will generally need to register when its VAT-taxable
turnover exceeds £90,000 during a rolling 12-month period.
Registration may also be required when the business expects its
taxable turnover to exceed £90,000 within the next 30 days alone.
Businesses below the threshold can normally register voluntarily.
2026 registration threshold: £90,000
2026 deregistration threshold: £88,000