VAT Calculator – UK

Enter the Amount and VAT rate, select Add VAT or Remove VAT, then click the Calculate button to view VAT details.

How to Calculate VAT?

It’s very simple, this online VAT calculator helps you calculate VAT in just a few seconds, both exclusive and inclusive VAT. Simply, enter the value and your VAT calculation is ready. For example, we take an amount of £100 and assume VAT at 18%.

Gross Price= £100+ (£100 × 0.18)= £118.00

What is VAT?

Value-added tax (VAT) is a type of tax that is levied on the sale of goods and services when these goods or services are sold to the consumer. VAT is an integral part of the GDP of any country and it comes under the Indirect tax.

VAT is a multi-stage tax levied at each stage of production of goods and services including sale and purchase. If the annual turnover exceeds a certain threshold (this threshold varies by country), then liable to pay VAT on supplies of goods and services.

What is Add VAT?

The amount that you input is the net price of the product or service. When you select Add VAT, the VAT rate is applied to the net price.

Formula:

Gross Price = Net Price + ( Net price × VAT rate)

What is Remove VAT?

The amount that you input is the total price (VAT + price) of the product or service. When you select Remove VAT, the VAT rate is deducted from the gross price.

Formula:

Net Price = Gross Price ÷ (1 + VAT Rate)

Example:

Net Price= £100 ÷ (1 + 0.18)= £84.74

Value Added Tax – Overview

Value Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of production or distribution. This is most common forms of indirect taxation used by governments around the world to generate revenue.

FAQs

Are there any exemptions or exceptions to VAT in the UK?

Yes, some goods and services are exempt from VAT, such as essential foods, health, education and financial services. Also, some goods and services are qualify for a reduced rate of VAT, like children’s car seats and home energy.

How do I calculate the VAT-exclusive price?

To calculate the VAT-exclusive price (price before adding VAT), you can use the formula: Net Price = Total Price ÷ (1 + VAT rate). For example, if an item costs £120 with a 20% VAT rate, the VAT part of the total price is £20. The calculation would be £120 ÷ (1 + 0.2) = £100.00.

How do I calculate the VAT-inclusive price?

To calculate the VAT-inclusive price (total price including VAT), you can use the formula: Total Price = Net Price + VAT. For example, if an item costs £100 with a 20% VAT rate, the VAT will be £20, and the total price will be £120.

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