VAT Calculator UK 2026 — Add VAT, Remove VAT & Ecommerce Sales Tax Guide
Use this free VAT Calculator UK to add VAT to a net price, remove VAT from a gross price, calculate VAT on multiple ecommerce products, and understand the latest UK VAT rates for Shopify, Amazon, eBay, OnBuy, WooCommerce, B2B invoices and online marketplace sales in 2026.
UK VAT Calculator — Add or Remove VAT Instantly
Enter an amount, select a UK VAT rate, and calculate the net amount, VAT amount and VAT-inclusive gross amount in seconds.
VAT Calculator UK
Add VAT or Remove VAT — standard, reduced, zero and custom VAT rates
Bulk VAT Calculator for Product Pricing
Calculate VAT on multiple SKUs, invoice lines or marketplace fees in one table
VAT Calculator UK 2026 Guide Contents
UK VAT Rates 2026 — Quick Reference for Ecommerce
The main UK VAT rates in 2026 are 20% standard rate, 5% reduced rate and 0% zero rate. Most ecommerce goods and services use the standard 20% VAT rate, but important exceptions apply for children’s clothing, most food, books, qualifying e-publications, domestic energy, children’s car seats and exempt financial services. Always check the liability of the specific product before setting a tax rule in Shopify, Amazon, eBay or your accounting software.
2026 Temporary VAT Update
From 25 June 2026 to 1 September 2026, a temporary 5% VAT rate applies to certain children’s meals and qualifying family attraction admissions. This does not change the general standard 20% VAT rate for most ecommerce products, but hospitality, ticketing and family-attraction sellers should review product rules and checkout tax settings carefully.
How to Calculate VAT in the UK
This UK VAT calculator handles the maths for you, but it is useful to understand the formula. VAT can be added to a net price when you know the price before tax, or removed from a gross price when you have a VAT-inclusive customer payment, Shopify order total, Amazon settlement line or eBay sale.
Add VAT to a Net Price
Use this when you know the ex-VAT amount and need the VAT-inclusive selling price for an invoice, product listing or quote. For 20% VAT: Gross = Net × 1.20.
Remove VAT from a Gross Price
Use this when the customer paid a VAT-inclusive price and you need to split it into net sales and output VAT. For 20% VAT: Net = Gross ÷ 1.20.
VAT Calculation Examples
£100 net × 1.20 = £120 gross— VAT amount is £20.£120 gross ÷ 1.20 = £100 net— VAT amount is £20.£100 net × 1.05 = £105 gross— reduced-rate VAT amount is £5.£105 gross ÷ 1.05 = £100 net— reduced-rate VAT amount is £5.
The 1/6 VAT Fraction for 20% VAT
When VAT is charged at 20%, the VAT included in a gross price is one sixth of the total. For example, the VAT inside a £120 VAT-inclusive sale is £120 ÷ 6 = £20. This shortcut is useful for quick checks, but the calculator is safer when you are working with 5%, 0%, mixed-rate orders, refunds or credit notes.
UK VAT Rates by Product Category — Ecommerce VAT Guide 2026
Ecommerce VAT is not decided by marketplace, payment processor or selling channel. The VAT rate depends on the product or service you supply, where the customer is located, whether you are VAT registered, and whether special rules apply. Use this table as a practical guide, then confirm unusual products with HMRC guidance or a VAT adviser.
| Product or Service Category | Typical VAT Rate | Ecommerce Examples | Important 2026 Notes |
|---|---|---|---|
| Most Physical Goods | 20% | Electronics, adult clothing, toys, furniture, cosmetics, accessories | Default VAT rate for most UK ecommerce products. |
| Children’s Clothing & Footwear | 0% | Qualifying children’s clothes and shoes | Zero-rated when conditions are met; adult sizes are normally 20%. |
| Books, Magazines & Printed Matter | 0% | Books, newspapers, maps, printed music, many magazines | Some printed items such as posters and stationery remain standard-rated. |
| Qualifying E-publications | 0% | E-books, e-newspapers, e-magazines, academic e-journals | Zero-rated from May 2020 when the publication qualifies; audio/video-heavy products may not qualify. |
| Digital Services & Software | 20% | SaaS, downloadable software, apps, online tools, many digital courses | Digital publications are different from software or general digital services. |
| Most Food & Basic Groceries | 0% | Bread, milk, fruit, vegetables, many basic food items | Confectionery, crisps, alcohol, hot takeaway food and some drinks are often standard-rated. |
| Children’s Meals — Temporary Rule | 5% | Qualifying children’s menu meals supplied by restaurants/cafés | Temporary 5% rate applies 25 June 2026 to 1 September 2026 where conditions are met. |
| Home Energy | 5% | Domestic gas, electricity, heating oil | Reduced rate for domestic energy supply; commercial energy rules can differ. |
| Children’s Car Seats | 5% | Child seats, booster seats, restraint systems | Reduced-rated, not zero-rated. |
| Energy-Saving Materials | 0% | Solar panels, heat pumps, insulation, qualifying installations | Conditions apply; not every green product or accessory qualifies. |
| Health & Medical Products | Mixed | Prescriptions, mobility aids, OTC medicines, supplements | Some supplies are zero-rated or exempt, while many supplements and general wellness products are 20%. |
| Financial Services | Exempt | Payment processing, banking, many PayPal/Stripe style transaction fees | Exempt means no output VAT and generally no input VAT reclaim on related costs. |
| Postage & Delivery | Mixed | Royal Mail universal service, courier delivery, shipping charges | VAT treatment can follow the underlying goods or depend on the service purchased. |
| Exports Outside the UK | 0% | Goods shipped from the UK to overseas customers | Can be zero-rated if export conditions and evidence requirements are met. |
Zero-Rated vs Exempt VAT
Zero-rated supplies are still taxable supplies at 0%, which usually means you can reclaim input VAT connected with those sales. Exempt supplies sit outside normal VAT charging rules, and input VAT recovery can be restricted. This difference is important for sellers with mixed product ranges, subscriptions, payment fees or financial-service income.
VAT Registration Threshold UK 2026
The UK VAT registration threshold in 2026 is £90,000 taxable turnover. This is measured over a rolling 12-month period, not simply your tax year or calendar year. Taxable turnover includes standard-rated, reduced-rated and zero-rated sales, but excludes exempt supplies. If your taxable turnover goes over the threshold, you must register for VAT within the required deadline and start applying VAT correctly from your effective registration date.
Registration Threshold
You must register if your taxable turnover goes over £90,000 in the last 12 months, or if you expect it to exceed £90,000 in the next 30 days alone.
Deregistration Threshold
You may apply to deregister if taxable turnover is expected to fall below £88,000, but check the impact on input VAT claims and pricing.
Rolling 12-Month Test
Do not wait for your year end. Ecommerce sellers should review turnover every month across all sales channels, including website, marketplaces and offline sales.
All Channels Count
Shopify, Amazon, eBay, Etsy, OnBuy, WooCommerce, wholesale, trade shows and direct invoices all count together for VAT threshold monitoring.
MTD for VAT
All VAT-registered businesses must keep VAT records digitally and submit VAT returns using Making Tax Digital compatible software or bridging software.
VAT Return Dates
Most sellers file quarterly VAT returns. Returns and payments are usually due one month and seven days after the VAT period ends.
Need help after crossing the VAT threshold?
Read our internal guides on Shopify Xero integration, Shopify payout reconciliation and A2X accounting integration to automate VAT coding and marketplace reconciliation.
VAT for Ecommerce Sellers in 2026
Ecommerce VAT can become complicated because online sellers often have mixed product rates, multiple marketplaces, bundled shipping, refunds, discounts, gift cards, platform fees and sales across several regions. The safest approach is to set correct tax rules in the store, reconcile payout reports to accounting software, and review VAT returns before filing.
Shopify VAT Calculator and UK Tax Settings
Shopify can calculate UK VAT at checkout, but Shopify does not replace your VAT compliance review. A VAT-registered UK Shopify seller should decide whether customer-facing prices are VAT-inclusive or VAT-exclusive, check product tax overrides for zero-rated goods, and reconcile Shopify Payments deposits to gross sales, refunds, shipping, discounts and fees. For a detailed setup walkthrough, see our Shopify Xero integration guide.
Amazon VAT for UK Sellers
Amazon orders, FBA fees, referral fees, advertising charges and VAT calculation reports should be reviewed before posting to Xero or QuickBooks. The customer price, Amazon fee invoice and settlement payout are separate pieces of the accounting process. Use the bulk VAT calculator above when checking product margins before launching new SKUs or when comparing VAT-inclusive Amazon selling prices.
eBay, Etsy, OnBuy and WooCommerce VAT
Smaller sellers often cross the VAT threshold because turnover is spread across multiple channels. Use one VAT control workflow for all marketplaces: record gross sales, split output VAT, post platform fees, reconcile payouts, and keep evidence for exports or zero-rated sales. This avoids under-declaring output VAT or double-counting marketplace income.
VAT on Ecommerce Platform Fees — What Can You Reclaim?
VAT-registered sellers can usually reclaim input VAT on business costs that include UK VAT, as long as the costs relate to taxable business activity and you hold valid VAT invoices. Payment processing fees are often exempt financial services, which means no VAT is charged and there is normally no VAT to reclaim. Always check the invoice rather than assuming every fee has the same VAT treatment.
| Cost or Fee | Common Platform | VAT Treatment | Input VAT Reclaim? | Practical Note |
|---|---|---|---|---|
| Monthly Store Subscription | Shopify, eBay shop, apps | Usually 20% | Often yes | Keep the VAT invoice in your accounting records. |
| Referral / Commission Fees | Amazon, OnBuy, eBay | Often 20% | Often yes | Post fees separately from sales to avoid margin errors. |
| Fulfilment Fees | Amazon FBA, 3PL providers | Usually 20% | Often yes | Check storage, fulfilment and removal fee invoices. |
| Advertising / PPC | Amazon Ads, Google Ads, Meta Ads | Mixed / reverse charge possible | Depends | Cross-border ad invoices may require reverse charge accounting. |
| Payment Processing | Stripe, PayPal, Shopify Payments | Often exempt | No VAT if exempt | Financial-service treatment is common; verify invoice wording. |
| Accounting Software | Xero, QuickBooks, A2X | Usually 20% | Often yes | Useful for MTD records and VAT return preparation. |
| Courier & Postage | Royal Mail, DPD, Evri, DHL | Mixed | Depends | VAT depends on the exact service, invoice and contract. |
International VAT, Exports, EU OSS and IOSS
For goods exported from Great Britain to customers outside the UK, UK VAT can often be zero-rated if the export conditions are met and evidence is retained. Northern Ireland has special rules for distance sales to EU consumers. If distance sales from Northern Ireland to EU consumers exceed £8,818 / €10,000, the seller may need to use the VAT One Stop Shop or register in EU member states. For low-value goods imported into the EU from outside the EU, IOSS can simplify VAT collection on consignments not exceeding €150.
Exports from the UK
UK exports can be zero-rated, but you must keep commercial or official evidence of export. Do not mark exports as zero-rated unless the conditions are met.
EU OSS / IOSS
OSS is relevant for Northern Ireland to EU distance sales above the threshold. IOSS can apply to imported low-value goods to EU consumers, subject to scheme rules.
Common VAT Mistakes Ecommerce Sellers Make
- Checking VAT turnover only at year end instead of monthly.
- Assuming Shopify, Amazon or eBay has filed VAT automatically.
- Treating zero-rated and exempt supplies as the same thing.
- Posting payout deposits as sales without splitting fees and VAT.
- Charging 20% VAT on products that may be zero-rated.
- Not keeping export evidence for overseas orders.
- Ignoring refunds, chargebacks and partial returns in VAT returns.
- Using one VAT code for mixed-rate product bundles.
- Not keeping VAT invoices for reclaimable platform fees.
- Forgetting reverse charge entries on overseas supplier invoices.
Best VAT Workflow for Shopify, Amazon and Marketplace Sellers
- Set product tax categories correctly before listing new products, especially children’s clothing, books, food, e-publications and bundles.
- Track rolling taxable turnover monthly across every channel so the £90,000 VAT threshold is not missed.
- Use VAT-inclusive customer pricing where appropriate for UK B2C sales, and document whether prices include or exclude VAT.
- Reconcile payout reports to gross orders, refunds, shipping, discounts, gift cards, platform fees and bank deposits.
- Connect accounting tools such as Xero, QuickBooks, A2X or Link My Books to keep MTD-compliant digital VAT records.
- Review VAT codes before filing, especially for exports, EU sales, zero-rated supplies, exempt fees and reverse charge purchases.
Useful VAT Resources
Automate VAT Accounting for Your Ecommerce Store
Stop calculating VAT manually on every order. Connect Shopify, Amazon, eBay or OnBuy to Xero or QuickBooks and automate VAT coding, payout reconciliation, fee posting and MTD-ready reporting.
UK VAT Calculator FAQs 2026
To add 20% VAT to a net price, multiply the net amount by 1.20. For example, £100 net × 1.20 = £120 gross. The VAT amount alone is £100 × 0.20 = £20. The calculator above does this automatically and also works for 5%, 0% and custom VAT rates.
To remove 20% VAT from a VAT-inclusive gross price, divide by 1.20. For example, £120 gross ÷ 1.20 = £100 net, and the VAT amount is £20. At 20%, the VAT portion of a gross price is also one sixth of the VAT-inclusive total.
The UK VAT registration threshold in 2026 is £90,000 of taxable turnover. This is tested on a rolling 12-month basis. If you expect taxable turnover to go over £90,000 in the next 30 days alone, you may also need to register. The deregistration threshold is £88,000.
A Shopify seller must charge UK VAT if the business is VAT registered and the goods or services are standard-rated or reduced-rated. If turnover is below the VAT threshold and the seller is not voluntarily registered, VAT is usually not charged. Shopify can calculate taxes, but the seller remains responsible for correct VAT settings and VAT returns.
Amazon may provide VAT calculation reports and invoices, but sellers still need to understand their VAT position, reconcile settlements, keep valid invoices and file returns if VAT registered. Amazon fees, FBA costs and advertising charges should be posted separately from sales income.
Zero-rated supplies are taxable at 0% and are included in taxable turnover. You can often reclaim input VAT on costs connected with zero-rated sales. Exempt supplies do not have VAT charged and can restrict input VAT recovery, so they must be coded differently in accounting software.
You can usually reclaim input VAT on business fees where UK VAT has been charged and you hold a valid VAT invoice. Many platform subscriptions, referral fees and fulfilment fees include VAT. Payment processing fees are often VAT exempt, so there may be no VAT to reclaim. Check the actual invoice before coding.
Goods exported from the UK can often be zero-rated for UK VAT if you meet export conditions and keep evidence such as commercial or official export documentation. If you cannot prove the export, HMRC may disallow zero-rating, so record keeping is essential.
Qualifying e-publications such as many e-books, e-newspapers and e-magazines can be zero-rated in the UK. This is different from software, apps, SaaS tools and many online courses, which are usually standard-rated digital services.
The best VAT calculator for ecommerce sellers should add VAT, remove VAT, handle multiple UK rates, support bulk line items and explain how the output should be used in Shopify, Amazon, eBay, Xero or QuickBooks. This page includes a single-item calculator and a bulk VAT calculator for product pricing and invoice checks.
Related Ecommerce Accounting Guides
Last reviewed: 25 June 2026. This guide is for general information only and is not a substitute for professional VAT advice.