Free VAT Calculator UK

• Our online VAT calculator is for calculating VAT rates in the UK
• The Currency of VAT is the pound Sterling
• While the Default VAT rate is: 20%

How to Use Our Online VAT Calculator UK

1. The default tax rate of this online calculator tool is set at 20%. However, if you have to calculate any other tax rate such as a reduced VAT rate of 5%, you can write it into the “VAT RATE” field. You can enter any value from 0 to 100 in this field.
2. Next, enter the gross or net price of goods or services into the “AMOUNT” field.
3. Now to add VAT to the net amount, click the green colored “ADD VAT” button.
4. For Removing VAT from the gross amount, click the red coloured “REMOVE VAT” button.
5. You will immediately get the results; amounts exclusive or inclusive of VAT.
6. You can copy the calculated amount to the clipboard by pressing the “COPY” button.

Features of Our Online VAT Calculator UK

Round Off Figures

Our online tool rounds figures to the nearest whole number or the decimal place below it. This way, you can calculate your tax amounts without worrying about rounding off the digits in your VAT return.

Flexible VAT Rates

You can not only calculate the standard UK VAT rates but also calculate any tax rate. For any other tax rate, you can manually enter that tax rate. For example, reduced VAT etc.

Copy and Share Results

You can copy the calculated amount to the clipboard at the touch of a button and share it with others.

What is VAT?

VAT is for Value Added Tax. It’s an indirect tax that is paid by the end consumer. It is applied to the sold goods and services and is collected by HMRC (His Majesty’s Revenue and Customs). Every UK based company whose turnover for a year exceeds more than £90,000, is required to apply for VAT registration.

How much is VAT in the UK?

Value Added Tax is imposed by VAT registered companies in the UK on their sold goods and services. These companies have their VAT registration number. The general VAT rate in the UK is 20%, however for some types of businesses it is reduced to 5%. Some items are exempted from this rate, while some are zero-rated items. For your guidance, we have presented these items in the form of a chart to give you an easy understanding.

Reduced VAT rate items 5%	Zero-rated items	VAT exempted items
Residential conversions	Books and newspapers	Some types of education & training
Children’s car seats	Children’s clothing and shoes	charities
Women’s sanitary products	public transport	Betting and gaming
Domestic consumption fuel & power	Export goods	postage stamps
Energy saving installation	Motorcycle helmets	Insurance

VAT Rates in UK

• UK Standard VAT Rate is 20%. Mostly this rate is charged on goods and services
• Reduced VAT Rate is 5%, and it’s for specific items such as women’s and kids items.
• Zero VAT Rates are applied mostly on exports, books etc.

Get Your VAT Number

In the UK, VAT is collected from all the businesses that are eligible for registration for VAT i-e their annual turnover exceeds £90,000. Before 1st April 2024, this limit was £85,000. This tax is collected on behalf of HMRC. After registration, each company gets its VAT registration number to claim VAT that has been paid earlier on their purchases on their VAT return.

How to Work out VAT?

Basically there are two formulas to calculate VAT. Adding VAT formula and Removing VAT formula. Here is how to calculate UK VAT.

Adding VAT

• Before calculating the VAT formula, find out the VAT rate applicable to those specific goods or services for which we are going to calculate VAT. 
• Then convert the VAT rate into decimal form by dividing the tax rate by 100. For example, if the applicable tax rate is 20%, then its decimal form will be 20/100= 0.20
• You have to determine the gross amount of products from the net amount. For adding VAT, a net amount means price excluding VAT.
• Calculate Value Added Tax amount by multiplying the net amount with a decimal form of the VAT rate.
• Now Add this VAT amount to the net amount of product to get the gross amount, a price including VAT.

VAT amount = Net price of products x VAT rate in decimal form
For example, if the net amount of goods or services is £400, and the applicable VAT rate is 20%.

VAT amount = £400 x 0.20 = £80
Gross Amount = £400 + £80 = £480(VAT inclusive price)

Removing VAT

• Determine which VAT is applicable; standard or reduced tax rate.
• For removing VAT formulas with VAT calculator UK, you get the gross amount. It means the tax is added to the price.
• In this case, you have to find out the net price of products from the gross price. The net amount (amount before VAT) is calculated by dividing the gross amount by one added by the decimal form of the VAT rate. 
• By subtracting the net amount from the gross amount, we get the VAT amount.

Net Price (price exclusive VAT) = Gross amount/(1+ Tax rate in decimal form)
VAT Amount = Gross Price – Net Price

For example, if the gross price of goods or services is £450, and the Tax rate is 20%(a decimal form of 20% is .20)

Net amount = £450/(1+.20) = £450/1.20 = £375(VAT exclusive price )
VAT amount = Gross-Net =£450-£375= £75

FAQs About VAT Calculator UK

How can I verify the validity of my company VAT number?

For UK companies there is an official service of the UK VAT number checker. To verify the VAT number of a European company, you can use VIES VAT number validation.

What is the minimum turnover limit for businesses to get registered for UK VAT?

From April 1, 2024, now UK companies whose turnover is more than £90,000 in one year should apply for VAT registration.

Shortly describe what is a flat rate VAT scheme.

This scheme was introduced to simplify the VAT registration. It’s for small businesses like contractors and freelancers whose turnover remains less than £150,000 during one year. 

Is the VAT rate applied to imported goods?

Yes, VAT rates are applicable on all the goods imported to the UK.

How is removing VAT formula different from adding VAT ?

In adding VAT calculation with VAT calculator UK , we find the gross price from the net price by adding VAT into it.  Whereas removing VAT calculation is vice versa. You find the net price from the gross price by subtracting the tax amount.

Conclusion

With our VAT calculator UK , you can calculate the gross amount of products by entering the net price ( VAT exclusive price)  in the amount field and then clicking the Add VAT button. Similarly, enter the gross amount ( VAT inclusive price) and click the remove VAT button, you can find the net price of the product. The default tax rate is set to 20%, but you can manually enter the tax rate other than the standard VAT rate. For accuracy, our online Tax calculator tells you the amount after rounding it off to the nearest whole number. Remember, this tax calculator is for calculating the UK VAT rates.