Add or remove VAT at 20% (standard) or 5% (reduced) — exact UK HMRC method.
The UK standard VAT rate is 20%, applied to most goods and services. The reduced rate of 5% applies to items like domestic energy, child car seats, and certain home energy-saving materials. Zero-rated items (0%) include most food, books and children's clothing. If you're VAT registered, you charge VAT on sales and reclaim VAT on eligible purchases.
Independent UK editorial covering the costs, risks and trends behind this tool.