Below we have mentioned the formula to calculate UK VAT
Amount excluding VAT x (VAT rates/100)
The amount of tax (including VAT) is the addition of the Amount excluding VAT + VAT amount
When a resident of UK purchase any goods or services, company handover the invoice that includes the total amount inclusive of tax.
Anyone can calculate taxes by using the above formula.
The standard VAT tax in UK applies to all sales transactions of goods or services and only few categories are excluded from this 20% VAT. Earlier the VAT was 17.5% but since January 2011 this VAT this been increased to 20%.
For few categories and services VAT has been reduced to 5%. These products, categories and services are children car seats, materials for energy saving and energy used in the home, and the products that help people to quit smoking and more.
These have been several products and services that are exempted from taxes. These are financial services, publications (such as books, magazines, novel, etc.), health care services, products related to health and more.
Please visit this page to know more about VAT rate in the UK goods and services.
You can calculate the flat rate as a business on the VAT. Please visit the flat rate calculator for UK.
You must register your business for VAT with HM Revenue and Customs (HMRC) if its VAT taxable turnover is more than £85,000.