VAT Calculator UK

Get accurate VAT calculations using our free online UK VAT calculator. Our VAT tax calculator is designed to provide efficient and accurate results with just a few clicks.

Amount:

Exclude VAT Add VAT VAT Rate: %

How to Use a VAT Calculator?

You can use this calculator by following these steps.

• Enter your amount
• Set the VAT rate (which is 20% in the UK)
• If you want to add VAT, click on the add vat, if you want to remove VAT click on remove vat and your result will be shown in the field.

By using our VAT calculation calculator, you can add VAT or remove VAT from a number, calculate VAT forward, calculate VAT backward, calculate VAT reverse, calculate VAT inclusive, calculate VAT exclusive, Calculate VAT from the gross amount with the most accurate results.

what people might not realize is that a third of all revenue collected by the government comes from VAT.

What is VAT?

Value-added tax or VAT is the tax imposed on most of the goods and services, by the government of the United Kingdom. The consumption tax is applied at every stage of the supply chain, from production to the final sale to the consumer.

It is a must for all businesses that are registered for VAT. Businesses can register them for VAT if their annual turnover is more than £90,000. Companies can also register for VAT if their annual turnover is less than £90,000. 

There are three VAT rates in the UK Standard Rate: 20%, Reduced Rate: 5%, Zero Rate: 0% but the standard VAT rate on most goods and supplies in the UK is 20%.

How to Calculate VAT?

While calculating VAT you need to understand whether you want to add VAT to the net amount or remove VAT from the total amount.

What is the Formula for Calculating VAT Manually?

The formula for calculating VAT is

To find the VAT amount:

VAT Amount = Original Price × VAT rate / 100

• The original Price is the price before VAT is added.
• VAT Rate is the percentage rate of VAT.

To find the total price including VAT:

Total Price = Original Price + VAT Amount

Alternatively, you can combine the two steps:

Total Price = Original Price × (1+VAT Rate/100)

To find the original price before VAT (if you know the total price and VAT rate):

Original Price=Total Price / 1+ VAT Rate / 100 ​

Total Price is the price after VAT has been added

How to Add VAT to the price?

Adding VAT to a price is simple, when you need to add VAT to a price, use the following calculation:

suppose the base price of the product is £100, and the VAT rate is 20%

VAT Amount = £100 × 0.20 = £20

Total Price with VAT will be: Total Price = £100 + £20 = £120

Example

If a shopkeeper sells a book with the basic price of £50 and the VAT rate is 20% then

VAT amount = £50 × 0.20 = £10

Total price = £50 + £10= £60

£60 is the price of the book including 20% of VAT.

How to Remove VAT from the Price?

When you need to remove VAT from the total price to find out the basic price, use the following calculation

Suppose the total price of a product Is £120 including 20% VAT

Calculate Base Price:

 Base Price = £120/1+ 0.20 = £120/1.20 = £100

VAT Amount = £120 − £100 = £20

Example

If a shopkeeper sale a shirt at the price of £96 including 20% VAT

Base Price for shirt = £96/1+0.20 = £96/1.20 = £80

VAT amount: £96 − £80 = £16

The base price of the shirt is £80, and the VAT is £16.

What is VAT Inclusive?

VAT inclusive means that VAT is also added to the price.

How to calculate VAT inclusive?

You can calculate VAT inclusive by following this simple calculation

if the total price of a product Is £120 including 20% VAT

Total Price of product = £120/1+ 0.20 = £120/1.20 = £100

VAT Amount = £120 − £100 = £20

Example:

A shopkeeper sells a pair of shoes for £120, including 20% VAT.

Total Price of shoes = £120/1+ 0.20 = £120/1.20 = £100

VAT Amount = £120 − £100 = £20

The basic price of shoes is £100 with 20% included in the total £120.

What is VAT Exclusive?

VAT exclusive means that VAT is not included yet, it will be added at the top of the basic price.

How to Calculate VAT Exclusive?

If the product price is £100 and the VAT rate is 20%.

Total price = • £100 × 1.20 = £120

VAT amount = £120 − £100 = £20

Example:

If the shopkeeper sells a pent, with a basic price of £30, and the VAT rate is 20%.

Total Price = £30 × 1.20 = £36

VAT amount = £36 − £30 = £6

The total price of pent is £36 which includes £6 VAT added to the base price of £30.

How to Calculate VAT Reverse?

To calculate reverse VAT charge or calculate VAT backwards follow this simple VAT reverse calculation, take the VAT rate, and divide it by 100.

Example:

A shopkeeper sells a bed for a total of £150, and the VAT rate is 20%

Basic price = £150/1+0.20 = £150/1.20 = £125

VAT amount = £150 – £125 = £25

The basic price of the bed is £125 and the VAT is £25 which makes the total price of £150.

How to calculate VAT from gross price?

You can calculate VAT from gross price by dividing the value of the VAT rate by 100.

Example:

A shopkeeper sells a table for a total of £200, and the VAT rate is 20%

Basic price = £200/1.20 = £166

VAT amount = £200 – £166 = £34

The base price of the table is £166, VAT amount is £34, making the total price £200.

Conclusion

Understanding how to use the VAT calculator UK is necessary if you want to manage your finances effectively. Using our VAT calculation tool you can easily add or remove VAT, work with VAT inclusive and exclusive prices, and calculate VAT backward within a few clicks and accurate results. Try out our VAT Calculator UK tool for free. If you need more help or have any questions, we’re here for you!

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