Check the VAT rate – it’s preset to 20 percentage
Enter the amount – Net amount or Gross amount
Click "Remove VAT" or "Add VAT" to calculate VAT amount.
The standard rate of VAT in the UK was increased from 17.5% to 20% on 4 January 2011.
The reduced rate of 5% is applied to some goods and services such as children’s car seats and home energy.
Zero VAT rate is applied to a range of products and services to do with health, publishing and kids’ clothing.
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).
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).
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.
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..
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.
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..
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..
