Calculators

Free VAT calculator for United Kingdom

£ + = = £

Formulas to calculate the United Kingdom VAT

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

VAT is a consumer tax on products and services in the United Kingdom and other foreign nations. At the point when products or services are bought, VAT is included for the cost of the products or services. When organizations charge VAT on products and services, it creates an additional level of liability and obligation to the tax authorities as that tax must be transmitted to the suitable authority and not held or considered as further revenue by the business. Those payments are made monthly, weekly, or yearly and are calculated in concert with the business’ accountant to make sure accuracy. In the U.K., that rate is currently 20% with specific exemptions or reduced rates categories. Categories with reduced VAT rates can extend from government work to food products to kids’ vehicle seats.

Free VAT Calculator for the United Kingdom

Use our free Value Added Tax Calculator to work out your VAT. Simply enter your “Amount without tax” and pick whether you need VAT included, or deducted from the total amount. Both calculations will show you the “Full amount with VAT”. Similarly you can change the VAT rate should the rate change from 20%.

Calculating VAT tax with the appropriate rate

There are three different rates of VAT and you must make sure you charge the right amount.

Standard rate: Most goods and services apply 20% standard rate. You should charge this rate unless the goods or services are classed as reduced or zero-rated.

Reduced rate: The reduced VAT tax is 5% applied to certain goods and services like electricity, some medical equipment for disabled persons, etc.

Zero rates: Zero-rated means that the products are still VAT-taxable but the rate of VAT you must charge your clients is 0%. For example: books, newspapers, children’s clothing and footwear, prescribed pharmaceutical products, etc.

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