Calculate the amount of VAT by choosing the rate that suits you and apply the following formula Amount excluding VAT x (VAT rates/100)
The amount of tax (including VAT) is the addition of the Amount excluding VAT + VAT amount
Value Added Tax, is put on the sale of products and services in the UK. It is a kind of “consumption tax” since it is charged on products that individuals purchase and as well is an ‘indirect tax’ since it is collected by organizations for the Government. The standard rate of VAT in the UK in 2017 is 20% and this is the rate charged on most buys. However, here are other VAT rates which you should know about as a business. The organization providing the item or service then pays this VAT to the tax authorities when they do their VAT returns. The more someone buys, the more VAT they should pay to the specialists. Tank is in some cases alluded to as deals charge.
You can use our helpful VAT calculator for the United Kingdom to figure the VAT charged on a net amount or the VAT included within a whole sum. Tank rates can change after some time. That is the reason you can generally alter the VAT rate yourself. You can use the VAT calculator to figure out the cost of products or services with VAT and determine the measure of VAT with various VAT rates.
The standard rate of VAT in the UK is currently 20% and this is the rate charged on all the products and services. On the other hand there are other sale tax rates which you need to be aware of as a business.
Reduced rate VAT is charged on certain social housing, sanitary products and children’s car seats and is charged at 5%.
The zero rate – as the name suggests, charged at 0% – is applied to foodstuffs, books, newspapers and children’s clothes. Even though no VAT is charged, the sale of zero rate goods and services still has to be recorded and reported on your VAT return.