The VAT Calculator UK is a free online tool that helps you calculate VAT on goods and services in the UK. Simply enter the amount, choose the rate of Vat and you will get goods with added vat and goods removing Vat. The calculator will then display the VAT amount, as well as the net amount.
The standard VAT rate in the UK is 20%, but there are also reduced rates of 5% and 0% for certain goods and services. The VAT Calculator UK can handle all three rates, so you can be sure that you’re always paying the correct amount of VAT.
The VAT Calculator UK is a quick and easy way to calculate VAT. It’s perfect for businesses, individuals, and anyone else who needs to calculate VAT on a regular basis.
Here are some of the features of the VAT Calculator UK:
- Free to use
- Easy to use
- Accurate
- Handles all three VAT rates
- Updated regularly
If you need to calculate VAT, the VAT Calculator UK is the perfect tool for you. Try it today!
Table of Contents
What is VAT
Value-added tax (VAT) is a consumption tax that is added to the price of goods and services at each stage of production and distribution, from raw materials to the final sale. The final consumer pays the full amount of VAT, but businesses can claim back any VAT they have paid on their business expenses. Know more
For example, let’s say a company buys a widget for £100. They then add £20 of value to the widget by manufacturing it and selling it to a retailer for £120. The retailer then adds £10 of value to the widget by displaying it in their store and selling it to a customer for £130. The customer pays £130 for the widget, which includes £30 in VAT.
The company that manufactured the widget can claim back the £20 of VAT they paid on the widget, and the retailer can claim back the £10 of VAT they paid on the widget. The only person who actually pays the VAT is the customer, who pays £30 more for the widget than they would have if there was no VAT.
VAT is a popular tax because it is relatively easy to collect and administer. It is also a relatively efficient tax, as it does not discourage economic activity as much as other taxes, such as income taxes.
How much is the VAT rate in the UK in 2024
The current standard VAT rate in the UK is 20% in 2024-2025. This percentage of tax is applied to the sale price of goods and services.
| % of VAT | What the rate applies to | |
| Standard rate | 20% | Most goods and services |
| Reduced rate | 5% | Some goods and services, eg children’s car seats and home energy |
| Zero rate | 0% | Zero-rated goods and services, eg most food and children’s clothes |
Table for Current VAT rates for goods and services
ALSO CHECK: Flat rate vat scheme in UK
How do I calculate VAT?
To calculate VAT, you can use the following formula:
VAT = (Price x VAT Rate) / 100
For example, if the price of a product is £100 and the VAT rate is 20%, then the VAT is £20.
You can also use the vatcalculatoruk.online website to calculate VAT. To do this, simply enter the price of the product and the VAT rate in the relevant fields, and the VAT amount is displayed.
Here are the steps on how to calculate VAT using the vat calculator UK website:
- Go to the vatcalculatoruk.online website.
- In the “Price” field, enter the price of the product.
- In the “VAT Rate” Slider, select the VAT rate.
- The website will display the amount of VAT.
Here is an example of how to calculate VAT :
Price: £100
VAT Rate: 20%
VAT = (Price x VAT Rate) / 100
= (100 x 20) / 100
VAT: £20Benefits of VAT:
- It is a broad-based tax, which means that it applies to a wide range of goods and services. This makes it more equitable than other taxes, such as income taxes, which are only paid by a small percentage of the population.
- It is a self-assessed tax, which means that businesses are responsible for collecting and remitting the tax to the government. This reduces the administrative burden on the government.
- It is a relatively efficient tax, as it does not discourage economic activity as much as other taxes, such as income taxes.
Drawbacks of VAT:
- It can be regressive, meaning that it places a higher burden on low-income households than on high-income households. This is because low-income households tend to spend a higher proportion of their income on goods and services that are subject to VAT.
- It can be complex to administer, especially for small businesses.
- It can be a barrier to trade, as businesses have to register for VAT in each country where they sell goods or services.
What are the reduced rates of VAT in the UK?
There are two reduced rates of VAT in the UK:
* 5% applies to certain goods and services, such as food, children's clothing, and books.
* 0% applies to certain goods and services, such as exports, financial services, and construction.What are the exempt goods and services in the UK?
There are a number of goods and services that are exempt from VAT, such as:
* Education
* Healthcare
* Social care
* Charities
* Religious organizations
* Sports clubs
* Arts and culture
* Financial services
* Insurance
* Transport
* Postal services
* Water and sewerage services
* Broadcasting
* Telecommunications
* Postal servicesFAQs About VAT Calculator UK
Who has to pay VAT in the UK?
Businesses that make taxable supplies in the UK have to register for VAT and collect VAT on those supplies. Businesses that make supplies below the registration threshold are not required to register for VAT, but they can still choose to do so.
How do I register for VAT in the UK?
To register for VAT in the UK, you need to complete a VAT registration form and submit it to HM Revenue & Customs (HMRC). You can find the form on the HMRC website.
How do I submit a VAT return?
Businesses that are registered for VAT have to submit a VAT return to HMRC every three months. You can submit your VAT return online or by post.
What are the penalties for not paying VAT?
If you don’t pay the VAT that you owe, you could be fined or even imprisoned. The amount of the fine or imprisonment will depend on the amount of VAT that you owe.