🇬🇧 Guide · United Kingdom · Published 2026-09-03
VAT in United Kingdom: rate, registration and filing
The 20% standard rate of VAT in United Kingdom, who must register with HM Revenue and Customs (HMRC), what a VAT invoice must show, and when returns and payments are due.
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Updated for 2026
Last reviewed September 2026
The rate
The standard rate in United Kingdom is 20%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
Registration becomes compulsory once taxable turnover passes the threshold HM Revenue and Customs (HMRC) sets, measured over a rolling period. Below it, registration is usually voluntary, which makes sense if your customers are registered businesses that can reclaim what you charge.
Registration is compulsory once VAT-taxable turnover exceeds £90,000 in any rolling 12 months; you can deregister below £88,000.
How to register
Register with HM Revenue and Customs (HMRC) on HMRC online services (Government Gateway) using your VAT number. Once registered you receive a VAT registration number or certificate, and from that date you must charge VAT on taxable sales, issue compliant invoices and file returns even when nothing is due.
Charging VAT on an invoice
Show the net amount, the VAT rate, the VAT amount and the gross total, with your registration number in the header. Prices quoted to consumers should include VAT; prices quoted to businesses usually exclude it and say so. The United Kingdom calculator adds or removes VAT and shows the arithmetic.
VAT invoices must show the VAT number, the rate per line, the VAT amount and the tax point (time of supply).
Simplified invoices are allowed for sales under £250.
Filing and paying
Returns are periodic, most often monthly or quarterly, and report the VAT you charged less the VAT you paid on purchases. The difference is paid to HM Revenue and Customs (HMRC) by the return deadline; a repayment is claimed when purchases exceed sales.
Quarterly returns through Making Tax Digital software, due one month and seven days after the quarter ends, with payment by the same date.
Penalties for getting it wrong
Late registration, late returns and late payment each attract penalties and interest with HM Revenue and Customs (HMRC). Charging VAT while unregistered is an offence in most countries. If you missed the threshold, register now and declare the back period.
Late submissions earn points and a £200 penalty at the points threshold; late payment interest runs from the due date.
Questions people ask
How do I add VAT to a price?
Multiply the net price by 1.2. A £100 sale at 20% carries £20 of VAT and totals £120.
How do I remove VAT from a total?
Divide the gross by 1.2 to get the net, then subtract to find the tax. Dividing, not taking a percentage off, is the step people get wrong.
Should I register voluntarily?
If most of your customers are registered businesses, yes: they reclaim what you charge and you reclaim what you pay. If your customers are consumers, registration raises your prices by the tax rate or cuts your margin.
What if I am not registered?
Do not charge VAT and do not show a VAT line. State on the invoice that no VAT was charged. The generator prints that line when the toggle is off.
Written from published tax-authority guidance and reviewed on 2026-09-03. Everything here is indicative rather than a ruling on your circumstances, and rules change. Confirm anything you rely on with HM Revenue and Customs (HMRC) before acting on it, and tell us if you find something out of date so we can correct it.
This guide explains the rules in general terms and is not tax advice for your circumstances. Confirm your position with a qualified adviser or with HM Revenue and Customs (HMRC).
🇬🇧 United Kingdom
Tools for United Kingdom
Invoices, quotations, purchase orders, credit notes and waybills in GBP, with VAT and the VAT number on the document. Plus a VAT calculator and a salary tax calculator. Everything runs in your browser and nothing is uploaded.