VAT Calculator

Last updated: November 13, 2021
Add VAT to a price or take VAT off a price in a click with our handy online VAT calculator
Remove VAT Add VAT


How to use the VAT calculator

Calculating VAT for VAT-inclusive and VAT-exclusive prices has never been easier. Only 3 easy steps for VAT calculation:

  • Check the VAT rate. It’s preset to 20%
  • Enter the net or gross sum
  • Click "Remove VAT" to deduct VAT from figure or "Add VAT" to calculate amount with VAT
VAT calculator preset to UK rates
🗺️ Country of VAT United Kingdom
💷 Currency of VAT Pound sterling
📈 Standard rate 20% VAT
📉 Reduced rate 5% VAT
UK

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What is Value Added Tax and how much is VAT in the UK?


VAT (known in some countries as a GST) 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%.

Reduced-rate items Zero-rated items VAT exempt items
Children's car seats Children's clothing and shoes, public transport Betting and gaming
Women's sanitary products Books and newspapers Subscriptions to membership organisations
Residential conversions Food - except meals in restaurants Fundraising events by charities
Installation of energy-saving materials Most goods you export to a country outside the UK Some education and training
Domestic fuel and power Motorcycle helmets Providing credit and Insurance

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.

UK VAT rates history

Date VAT changes
1st April 1973 10% Value Added Tax has been introduced in the UK
29th July 1974 VAT rate reduced to 8% but 25% fuel tax introduced
18th June 1979 Value Added Tax rate increased to 15%
1st April 1991 The VAT rate has been increased to 17.5%
1st December 2008 Standard sales tax rate reduced by 15%
1st January 2010 The standard rate was increased to 17.5% and a reduced rate of 7% was introduced
4th January 2011 The standard VAT rate is increased to current 20% and the reduced rate is set at 5%

VAT Rates in Europe

Country Standard VAT Rates Reduced VAT Rates
Austria 20% 10%, 13%, 19%
Belgium 21% 12%, 6%
Bulgaria 20% 9%
Croatia 25% 13%, 5%
Cyprus 19% 5%, 9%
Czech Republic 21% 15%, 10%
Denmark 25% -
Estonia 20% 9%
Finland 24% 14%, 10%
France 20% 5.5%, 2.1%
Germany 19% 7%, 5.5%
Greece 24% 13%
Hungary 27% 5%, 12%, 7%, 18%
Ireland 23% 13.5%, 4.8%, 9%
Italy 22% 4%, 5%, 10%
Latvia 21% 12%
Lithuania 21% 9%, 5%
Luxembourg 17% 14%, 3%, 8%
Malta 18% 5%, 7%
Monaco 20% 5.5%, 10%, 2.1%
Netherlands 21% 9%
Poland 23% 8%, 5%
Portugal 23% 6%, 13%
Romania 19% 9%, 5%
Slovakia 20% 10%, 6%
Slovenia 22% 9.5%, 5%
Spain 21% 10%, 4%
Sweden 25% 12%, 6%

Working Out 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, to divide the amount by 100 and then multiply by (100 + VAT percentage). That's all, you got the amount including VAT (Gross). To make sure you get it right, better use our calculator.


Add VAT

VAT Addition Example

For example, if your business sells sports equipment for £500

  1. First, you need to divide the amount by 100 per cent
  2. Then multiply this value by 120 per cent
  3. After the calculation, we get £600, which is the price including VAT

revers vat calculation

Removing VAT Formula

If you want to remove VAT from the price, to divide the amount by (100 + VAT percentage) and then multiply by 100. Now you know the amount exclusive of VAT (Net). If this is difficult for you, use our calculator.


Remove VAT

VAT Subtraction Example

For example, if you bought a laptop for a Gross price £500

  1. First, you need to divide the price by 120 per cent
  2. Then multiply the value obtained by 100 per cent
  3. We get £416.67, which is the price excluding VAT

how to calculate VAT in excel
excel

Calculate VAT in Excel

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

Download spreadsheet

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-rated 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..

6 Interesting VAT Facts

Here you will find the 6 most interesting facts about VAT that you probably didn't know.
fact 1

VAT was first introduced in France in 1954. The UK VAT rate was originally set at 10% and gradually increased over time, rising to 20% in 2011, and has remained so ever since.

fact 2

In the 2019/2020 tax year, the UK generated £129.88 billion in VAT revenue. VAT is the third largest source of government revenue after income tax and National Insurance.

fact 3

Hungary has the highest VAT rate in the world at 27%, followed by Iceland with 25.5%. Countries that don't charge VAT at all include the Bahamas, Hong Kong, Saudi Arabia and Qatar.

fact 4

Brands that have fought and won VAT victories include Jaffa Cakes and Tunnocks Snowballs, which have successfully proven that their products are cakes (VAT-free) and not cookies, which in turn are subject to VAT.

fact 5

The highlight for the media was the emergence of Pastygate in 2012. The government's proposal to start charging VAT on takeout items such as hot sausage rolls and pastries met with widespread disapproval.

fact 6

Goods with a zero rate of VAT in the UK include: children's clothing, most foodstuffs, books and prescription drugs. Other items not subject to VAT include visits to museums, antiques and postal services.

Calculators for Small Business

We will be adding new financial calculators to our website very soon. Below is a list of the calculators that will appear first. If you have any queries please email us.
Income Tax Calculator
Income Tax Calculator

If you’re self-employed, it can sometimes be difficult to work out exactly what your take-home pay is once you’ve covered all of your business costs.

Self Assessment Tax Calculator
Self Assessment Tax Calculator

Whether you’re employed, self-employed or a combination of both, working out your take home pay after tax can be tricky.

Corporation Tax Calculator
Corporation Tax Calculator

Use this calculator to find out how much corporation tax your limited company will be liable for, which is based on your net profit before taxes.

Umbrella Tax Calculator
Umbrella Tax Calculator

Our take-home pay calculator gives a rough estimate of what your potential salary might look like if you work through an umbrella company.

PAYE Calculator
PAYE Calculator

Use this calculator to calculate your take home pay as well as contributions to PAYE and NI, determined by your annual gross salary.

Mortgage Calculator
Mortgage Calculator

A mortgage is one of the biggest commitments you make in your financial life. Our mortgage calculator can help you to know how much they will cost you.

Pension Calculator
Pension Calculator

How much do you need in retirement and how much will you have? Our pension calculator will help you answer these questions.

IR35 Tax Calculator
IR35 Tax Calculator

IR35 calculator have become an easy way to find an instant figure of your earnings depending on your situation.

Dividend Tax Calculator
Dividend Tax Calculator

Find out how much income tax you have to pay based on your current salary and annual dividends with this calculator.

Related VAT Guides

Watch videos and presentations. You need to register for free webinars to learn more about VAT.
VAT Accounting schemes
VAT Accounting schemes

You will learn about the 3 most popular schemes: cash accounting scheme, flat rate scheme, annual accounting scheme. Watch webinar about VAT accounting schemes.

How to do your VAT Return
How to do your VAT Return

This webinar is about: how and when to send your VAT Return, useful tips on how to complete a VAT Return. Watch how to do your VAT Return.

VAT Flat Rate Scheme
VAT Flat Rate Scheme

You will learn about: what the Flat Rate Scheme is, how to keep VAT records, how to fill in your VAT Return. Watch video about the VAT Flat Rate Scheme

Contractors’ guide to VAT
Contractors’ guide to VAT

There are several VAT schemes contractors can register to: the standard rate VAT scheme, VAT flat rate scheme, annual accounting VAT scheme and cash accounting scheme.

HMRC VAT Inspection
HMRC VAT Inspection

VAT officers can visit your business to inspect your VAT records and make sure you’re paying or reclaiming the right amount of VAT.

Filing a Late VAT Return
Filing a Late VAT Return

If you submit a late return, you will not have to pay a surcharge if you: pay your VAT in full by the deadline, have no tax to pay, are due a VAT repayment.

What users are saying

Vatulator reviews & testimonials: see what other are saying. You can also leave your review here or on Smart Reviews, Trustpilot, G2 or Capterra

Cristian Sarasanu
July 31, 2021

Vatulator is a quick and efficient tool for calculating how much money you pay for a certain product. Sadly, the only region it can be useful in is the United Kingdom. I wrote a full review here https://www.softpedia.com/get/Others/Finances-Business/VATulator.shtml

Admin
August 1, 2021

Christian, thanks for the feedback! In my calculator you can change the VAT rates as you like. I have also made pages for United Arab Emirates, South African and Irish users. There is also a Ukrainian and a Russian version of the VAT calculator

James Nichols
August 7, 2021

Please add export data to excel. I think you should add other calculators such as IR35 or a dividend tax calculator.

Daria
September 15, 2021

Due to this tool, you will easily find out how much income tax you have to pay according to your salary and annual dividends. My full review here https://freeappsforme.com/vat-calculator-review/

Alex
November 13, 2021

If you make a drop-down list with VAT rates for any country then it would really be a universal VAT calc.

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