Our free VAT calculator enables you to compute VAT to add or subtract from a price.
Wat are the VAT rates in the UK?
Since January 4 th 2011 the standard VAT rate has been 20%. In addition there is a reduced rate of 5% and a zero rate of 0%. The reduced tariff of 5% applies to some services and goods such as home energy or children's car seats. The zero rate applies to some goods and services such as children's clothes and most food. Some things don't even have a zero rate but are simply exempt from VAT: for example property and financial transactions and stamps. For more information click here: VAT rates. You can easily adjust VAT rates in the form above.
How to calculate British VAT
The Value Added Tax (VAT) is calculated directly on the sale price of the product / service concerned. As an entrepreneur, you must therefore know the valid VAT rate for your activity and mention on your invoice:
- the net sale price with VAT excluded
- the rate of VAT applied
- the amount of VAT that this represents
- the total sale price with all taxes included (VAT included)
Calculation of VAT from the net price
The calculation of the VAT amount based on the price excluding VAT is calculated as follows:
standard rate: (net price exclusive of VAT / 100) x 120 = total price with VAT
reduced rate: (net price exclusive of VAT / 100) x 105 = total price with VAT
Calculation of VAT from the total price
The calculation of the amount of VAT based on the all inclusive price is as follows:
standard rate: total price inclusive of VAT / 1,2 = net price without VAT
reduced rate: total price inclusive of VAT / 1,05 = net price without VAT
It is true that many people have difficulty calculating a VAT amount.
Calculating a VAT amount can be very useful in many situations, for example when you want to know whether a company has calculated the correct VAT amount, or when you as an entrepreneur create an invoice and therefore want to calculate the VAT.
This VAT calculator is for people who have difficulty calculating a VAT amount and for people who are a bit lazy to calculate a VAT amount.
On this website you find a very handy tool that automatically calculates the VAT for you.
Why is it useful to calculate the VAT?
Calculating VAT can be useful several times.
One moment one must calculate the VAT of a price to be able to state this on an invoice and at another moment one wants to check whether he / she does not pay too much VAT.
It is smart and handy to check the VAT amount with our online tool because in this way you are always sure that the VAT calculation is 100% correct.
If you are going to compute the VAT yourself with a manual calculator or by calculating it on paper, there is always a chance that this doesn't go completely well.
This even happens very often within small businesses.
Because good accounting programs are often too expensive for small businesses, they often use Word to create an invoice.
The disadvantage of Word is that you have to determine the VAT yourself. This VAT calculator is ideal for this, so you are always 100% sure that your computation is correct.
How does our VAT calculator work?
Calculating VAT is very simple on this site, you enter an amount and at the same time indicate whether you want to add or take off the VAT. Then click one of the buttons. You now immediately see what the amount is exclusive and including VAT. In addition you see the VAT amount.