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UK VAT Calculator

VAT Calculator Tool User Guide

Welcome to the VAT Calculator Tool! Follow these steps to use the calculator:

  1. Input the total amount in the "Enter Amount" field.
  2. Enter the applicable VAT percentage in the "Enter VAT Percentage" field.
  3. Click on the "Add VAT" or "Exclude VAT" button to perform calculations.

UK VAT Information

Addition of VAT
VAT, or Value Added Tax, is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. It's a form of indirect tax.

Addition of VAT:
To calculate the value including VAT:
1. Multiply the value by 1 + VAT Percentage.
2. For example, if the VAT rate is 20% (like in the UK), you would do value X 1.2.
3. For instance, £150 value X 1.2 = £180, This is the amount including the VAT.
Removal of VAT
VAT can be removed or reclaimed by businesses in certain circumstances, such as exportation or when the product or service is exempted from VAT.

Example of Removal of VAT:
To calculate the amount excluding VAT:
1. Divide the amount by 1 + VAT Percentage.
2. For example, if the VAT rate is 20% (like in the UK), you would do amount / 1.2.
3. For instance, £180 amount / 1.2 = £150, this is the amount excluding VAT.

How much is VAT in the UK?

VAT (Value added tax) know as (GST ) in various countries is a sales tax charged on most products and services provided by VAT-registered businesses in the UK.

The current standard rate of VAT is 20%, while the reduced rate is 5%.

Reduced-rate items Zero-rated items VAT exempt items
Children's toy car seats Children's clothing and footwears, public transport Betting and gaming
Women's sanitary products Books and newspapers Subscriptions to membership organisations, postage stamps
Residential conversions Cooking oil, Eggs, fish, Fruits Fundraising events by charities
Installation of energy-saving materials Donated products for charity Some education and training, sports activities
Domestic gas and electricity Motorcycle helmets Providing credit and Insurance

Value Added Tax is collected by companies on behalf of HMRC that are VAT registered. After registration, each company receives its own VAT number.

In the United Kingdom, Value Added Tax was introduced in 1973 as a replacement for Purchase Tax and Selective Employment Tax, as a condition of UK entry into the European Economic Community.

For more info about VAT please check Wikipedia.

If you want to check how much you can take home after tax in uk.