VAT Calculator Online
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
Zero-Rated Products
VAT Exempt Products
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
| Year | VAT-Rate |
|---|---|
| 1973-974 | 10% |
| 1974-1979 | 8% |
| 1979-1991 | 15% |
| 1991-2008 | 17.5% |
| 2008-2009 | 15% |
| 2009-2011 | 17.5% |
| 2011 – present | 20% |
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
Adding VAT
Step-1
Enter you amount in the given formula in the (Amount Place)
Step-2
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.
Step-3
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
Example
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.
Example
Lets we have an amount of £400
- Calculating VAT Part
(400/120)*20=£66.67 - Net Value
(400*100)/120=£333.33
20% is the standard rate of UK since 2011. It includes web services and many more.
The reduced rate for VAT is 5% like domestic fuel and many more.
Education and training, healthcare and medical treatment and many more are VAT Exempt.
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.