VAT Calculator Online

VAT Calculator

What is VAT?

Value-added tax (VAT) is a tax on the value of goods and services that a company produces. It is an indirect tax levied on businesses, which means that it is collected by the government from people who consume or use the product or service.

Current VAT Rate in UK (United kingdom)

Current standard rate of VAT is 20% and reduced rate is 5%. Value Added Tax vary from service to service or from product to product. Here is the list.

Reduced Rate Products

  • Domestic Fuel and Power
  • Residential Conversions
  • Children Car Seats
  • Women’s Sanitary Products

Zero-Rated Products

  • Newspaper
  • Aircraft Repair and Maintenance
  • Books
  • Motorcycle Helmets

VAT Exempt Products

  • Education and Training
  • Health Care
  • Property and Building
  • Financial Services

History of VAT in UK

The United Kingdom first implemented VAT in 1973. The VAT is collected from VAT-registered businesses by HMRC by registered business. Firstly, you have to register for VAT submission. Standard Rates has changed over the time

2011 – present20%
VAT Rate History

Working Out VAT – VAT calculator

You can Work Out VAT in 2 ways (Removing / Inclusive / Reversing) or (Adding / Exclusive) VAT .

VAT Calculation Formula

Removing VAT

  • {(Amount) ÷ (100 + VAT rate)}*VAT rate.
  • Let’s suppose we have VAT inclusive amount is 300 and the VAT rate is 8%.
  • £300÷(100+8))*8=£22.22

Adding VAT

  • (Amount) * {(VAT rate ÷ 100)+1}
  • Let’s suppose we have VAT exclusive amount is £300 and the VAT rate is 4%.
  • (£400) * {(4 ÷100)+1} =£416

Enter you amount in the given formula in the (Amount Place)

The amount you entered should be according to the formula you choose. If you want to add the VAT amount you have to choose the Add VAT formula and vice versa.

Verify your answer with our online calculator.

Examples of VAT Calculation

Price Plus VAT Example

To add the VAT amount just multiply by the exclusive amount by 1.2

To Add 20% VAT

Let’s assume we have VAT exclusive amount and we have to calculate the VAT inclusive these are the following steps to perform


Lets we have a amount of £300

  • £300
    = £300 * 1.2
    = £60 is VAT Amount
    = £300+£60
    = £360 (Net Amount)

Price Minus VAT Example

VAT inclusive amount means that VAT has already been included in the amount, and the customer pays no more tax. Getting the Value Added Tax amount from the paid amount is not a difficult task. I am going to show the manual way to get this.

To get the VAT part from the VAT inclusive amount you need to divide the VAT inclusive amount by 120 and multiply by 20

To get VAT NET VALUE while knowing VAT inclusive value you need to multiply VAT inclusive price by 100 and then divide the result by 120

Calculate your gst with gst calculator.


Lets we have an amount of £400

  • Calculating VAT Part
  • Net Value

20% Standard VAT Rate

20% is the standard rate of UK since 2011. It includes web services and many more.

5% Reduced VAT Rate

The reduced rate for VAT is 5% like domestic fuel and many more.

0% VAT Rate

Education and training, healthcare and medical treatment and many more are VAT Exempt.

vat calculator excel sheet
Download Excel VAT Calculator

Calculate VAT in Excel

Here is the excel file to calculate your VAT offline which is full automatic you just have to put the price of product.


20% is the standard rate of VAT collected by HMRC by registered business.

You can check the validity of your VAT number from the government site. Just enter your VAT number it will give the status of your VAT.

VAT registration is mandatory once businesses sell £85000 or more a year, or a voluntary registration can be made before then.