VAT Calculator Updated for 2021 UK Tax Rates

Add VAT to a price or take VAT off a price in a click with our handy online VAT calculator
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Calculator preset to 20% VAT. Change to 5% VAT

How to work out VAT

Calculating VAT for VAT-inclusive and exclusive prices has never been easier. Only 3 easy steps for VAT calculation. Simply enter your figure and check the correct VAT rate, press the "Add VAT" button if you want to find the sum inclusive VAT or press the "Remove VAT" button to deduct VAT from the total.
step 1

Check the VAT rate – it’s preset to 20 percentage

step 2

Enter the amount – Net amount or Gross amount

step 3

Click "Remove VAT" or "Add VAT" to calculate VAT amount.

What is VAT and how much is it in UK?

VAT is a sales tax and is charged on most goods and services provided by VAT-registered businesses in the UK and the Isle of Man. The current standard rate of VAT is 20%. The reduced rate of VAT is 5%.
Value Added Tax is collected on behalf of HMRC by businesses that are VAT registered. After registration, each company receives its own VAT number. These same business can also claim VAT back on relevant purchases.
In the United Kingdom value-added tax was introduced in 1973 as a replacement for Purchase Tax and Selective Employment Tax, as a condition of UK entry into the European Economic Community. You can find out more about VAT on Wikipedia.
standard rate

The standard rate of VAT in the UK was increased from 17.5% to 20% on 4 January 2011.

reduced rate

The reduced rate of 5% is applied to some goods and services such as children’s car seats and home energy.

zero rate

Zero VAT rate is applied to a range of products and services to do with health, publishing and kids’ clothing.

How to calculate VAT

Following these simple steps can help you to calculate VAT backwards or forwards.
add vat calculation

Adding VAT Formula

If you want to add VAT to the price, you just need to divide the price by 100 and then multiply by (100 + VAT percentage). That's all, you got the price including VAT (Gross value).

revers vat calculation

Removing VAT Formula

If you want to remove VAT from the price, you need to divide the price by (100 + VAT percentage) and then multiply by 100. Now you know the price exclusive VAT (Net amount).

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how to calculate VAT in excel

Calculate VAT in Excel

If you need to calculate VAT for several products at once, it is easier to use Excel. I created a template for reverse VAT calculation – download, it's free.

Download template

Frequently Asked VAT Questions & Answers

Below you will find information in Q&A format about value added tax.

What are the current VAT rates in the UK?

Rates vary according to what you’re supplying, and there are four main categories to think about: standard rate, reduce rate, zero rate and exempt supplies. Rates are subject to change and you must apply changes from the date they change read more..

How to check the validity of the company VAT number?

To verify the validity of the VAT number you can use the official services. For UK companies there is an UK VAT number checker. If you need to check the VAT number of a European company, try VIES VAT number validation.

What is the flat rate scheme?

The Flat Rate Scheme is open to businesses with a turnover of less than £ 150 000, and it’s designed to simplify the VAT process – particularly for freelancers, contractors and small businesses. You have to make sure you apply to HMRC to sign up for it read more..

Do I really need to register for VAT?

Well, that depends on your particular circumstances. If your turnover in a 12-month period reaches the current £85,000 threshold, then registration is compulsory – and if you don’t do it, you’ll receive a fine as a penalty. If you don’t hit this figure, then registration isn’t obligatory read more..

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