Try Our Latest Free Online VAT Calculator To Calculate Value Added Tax

You can calculate the standard rate of VAT from this VAT calculator in 3 simple steps:

Select your value in the box
Choose VAT (by default, it’s 20%)
All of your values will be calculated automatically.

You can remove VAT, subtract VAT or get reduced VAT rate from this VAT calculator in 3 simple steps:

Select your value in the box
Choose VAT (by default, it’s 20%)
All of your values will be calculated automatically

Calculating VAT or doing VAT calculation is not hard, honestly. Getting accurate and correct file values can be challenging, especially if you are in a hurry and have other essential chores/tasks to do daily(I know we all have critical personal things and tasks to sort out every day).

I have curated a unique free online VAT calculator as a free online tool to calculate exact VAT values to simplify this. You can easily add or remove VAT from this VAT tax calculator by just choosing the other tab of the calculator mentioned above.

I have designed this excellent website and handy VAT calculator as VAT rates have changed a lot, and people like you and me get confused easily. As the internet is vast, I could not find any relevant and latest websites that calculate VAT calculations or remove VAT.

That’s why I hired a professional financial accountant and told him to design a straightforward but effective free online VAT calculator that I can use quickly and my buddies, like you, can use too. It doesn’t matter whether you’re an individual or a small/large business user. You can conveniently calculate the net amount or minus vat from the gross amount.

The current to-date rate of VAT is 20 per cent; this changed from 17.5 per cent on the 4th of January 2011. Some temporary change happened on the 1st of Dec 2008, and it reduced the VAT. At the same time, it was again changed back to 17.5% on the 20th of Jan 2010.

Complete VAT History

France and Germany were the first countries to implement VAT in their regions; by this, they gathered a large amount of tax during World War I. At the same time, the current modern variation of VAT & charge VAT was applied by France in 1954 in the Ivory Coast colony.

This experiment was successful, and the VAT was first introduced by the French in 1958. In France, it is the most profitable and essential state finance source, generating 50% of state revenues. A recent 2017 report shows that the reception of value added tax or VAT is unequivocally connected to nations with corporatist establishments.

All of the information & online vat calculator displayed on this website, vatcalculatorpro.co.uk, is 100% genuine, approved and verified by a highly expert Chartered Accountant. You can use this free VAT calc daily compared to other sneaky financial calculators, anytime and anywhere, to figure out VAT calculations like inclusive or exclusive of VAT and VAT Schemes. If you need assistance or help using this VAT Calculator or have any queries about VAT, please contact us anytime or check the helpful FAQ below.

WHAT IS THE VAT RATE IN THE UK? (CURRENT VAT RATE)

The current UK and the Isle of Man standard VAT rate is 20%. This was increased from 17.5 % on the 4th of Jan 2011 under the Conservative & Liberal Democrats coalition government.

UK’s VAT rates include:

The standard UK VAT rate is currently 20% for significant products and services, but if you want to calculate some low percentage, then you can do it via the vat calculator available for you on this VAT Calculator Pro website.
The reduced UK VAT rate, which is 5% for a few goods and services, like home energy and children’s care products.
Last but not least is the zero rate of VAT in the UK, which is 0% for services and goods, like children’s apparel and most food items.

VAT THRESHOLD UK

UK VAT threshold means if your business is doing business over £85,000 in the taxable amount. In this case, you can register yourself as a VAT-registered company. Moreover, if you’re not doing business over or less than £85,000, you can still apply for VAT registration voluntarily.

There are many ins and outs that I’ve already discussed on this website to get yourself registered as VAT and provide you with the best working VAT Calculator for VAT calculations.

Value Added Tax vs. Sales Tax

Many people who need to become more familiar with VAT or the VAT system before using the VAT Calculator get confused easily with a national UK tax system. For your information, sales tax is collected once per year, or you say at the final phase of purchase by a consumer or merchant. So, in this case, only the retail customer has to pay for it.

The VAT system is invoice-based and is collected at different stages during final product or service production. Every time a value is added, a final sale is made, and any tax is collected and remitted to the government.

LET’S FIGURE OUT THE VAT & VAT AMOUNT

If you want to figure out VAT on your own instead of using the VAT Calculator listed here, you can figure it out effortlessly by adding/including VAT or removing/reversing VAT.

Adding / Including VAT Formula
Reversing / Removing VAT Formula

You can Multiply the original price/figure by 1 + VAT %
Let’s suppose the standard UK VAT rate is 20%, which shows you can do price/figure X 1.2
Another example is, £1000 is the price X 1.2 = £1200 which will be price/figure including VAT

You can Divide the real price/figure by 1. + VAT %
Let’s suppose the original UK VAT rate is 20%; that means you can do price/figure / 1.2
Let’s take a real example, £1200 is the figure / 1.2 = £1000 that’s the final figure/price excluding VAT

MORE VAT CALCULATIONS EXAMPLES

Assuming that the retailer has previously valued the item (VAT inclusive) and needed to reverse calculate the VAT to figure out the amount they owed to HMRC, they’d utilize the VAT subtraction model beneath.

You can use the VAT Calculator or take this general example to do Basic VAT Addition.

You can take a product whose price is £10 and divide by 1.2 (1 + VAT %) = £8.333

After the calculation, the shopkeeper will take the product’s original price (£10) and subtract the divided sum (£8.333) = £2

Now if you take the product price (£10) and divide it by 1.2 (1 + VAT %) = £8.333

So for this product, they owe £2 in total VAT

To do Basic VAT Addition, you can take this general example

You can take a product whose price is £20 and divide by 1.2 (1 + VAT %) = £16.666

After the calculation, the shopkeeper will take the product’s original price (£10) and subtract the divided sum (£16.666) = £3.334

Now if you take the product price (£20) and divide it by 1.2 (1 + VAT %) = £16.666

So for this product, they owe £3.334 in total VAT

Vat inclusive means the figure/price that includes VAT. You can also do this by using the VAT Calculator placed above. To get the final VAT inclusive, you have to include VAT:

Divide the required amount by 1.2 (1 + UK VAT %)

For example, take a product or service whose price is £800 and if you divide it by 1.2 = £960, which is the figure

The VAT inclusive for this will be the original gross price (£800) + price including VAT (£160) = £960

Vat exclusive means the figure/price that excludes VAT. Acquiring final VAT exclusive means the figure/price that excludes VAT. To get the final VAT exclusive, you have to exclude VAT:

Divide the required amount by 1.2 (1 + UK VAT %)

For example, take a product or service whose price is £800 and if you divide it by 1.2 = £960, which is the figure

The VAT exclusive for this will be the original gross price (£800) – price excluding VAT (£160) = £640

To calculate the Gross VAT figure, all you’ve to do is to do the following simple and easy steps:

Multiply the original price/figure by 1 + UK VAT Percentage
For example, the standard rate for the UK is 20%, which gives you a clear idea you can do the total amount/price x 1.2
Now let’s take a simple example that is one product price of £1200 x 1.2 = £1440, which will be the final gross VAT figure

To calculate VAT backwards from the above UK vat calculator or you’ve to do the following simple steps:

Take the total amount you want to work backwards from and divide it by 1.2 (1 + UK VAT percentage), then subtract the divided actual number from the original number, which will be equal to the VAT.
Now let’s take a real world example £80/1.2(standard UK VAT rate) = £70 (this price without VAT)
Original amount is (£80) – £70 (price without VAT) = £10 VAT

HERE ARE TIDBITS ABOUT UK VAT

Products & Services UK VAT Rates

Some products in food & drinks are taxed at a standard rate of 20%.

UK Exempt Food Products Non-VAT

Hot take-away food & drinks (including burgers, hot dogs, toasted sandwiches etc.)	Food & drinks supplied for consumption on the premises (at restaurants, cafes etc.)	Bottled water (including mineral water) & Carbonated drinks
Ice cream	Alcoholic drinks	Nuts (shelled, roasted & salted)
Potato crisps	Fruit juice & other cold drinks (not milk)	Chocolate
Confectionery/sweets	Biscuits (chocolate covered only)	Cereal bars

Without VAT Food Items

Most of the food inside the UK is zero-appraised, meaning you don’t pay VAT or are exempt from VAT. (Source) Let’s check them below right now.

UK VAT Excluded Food Products

Below are some UK VAT Exempt Food Products:

Biscuits (not chocolate covered)	Eggs, meat & poultry	Cooking oil
Chilled/frozen ready meals (convenience foods)	Cakes (including chocolate teacake, Jaffa Cakes)	Salt (culinary)
Milk, butter, cheese	Canned & frozen food (not ice cream)	Nuts & pulses (raw for human consumption)
Tea, coffee & cocoa	Bread, rolls, baps & pitta bread	Fruit & vegetables
Sandwiches (cold)	Water (household)	Cereals Fish (including live fish)

VAT Exempt Items & Services

Cultural events managed by public entities (zoos & performances, museums, art exhibitions )	Commercial buildings & land (letting/selling/leasing)	General Health Services (pharmacists & other health professionals, doctors, dentists, opticians)
Cremation or burial (human)	Physical education & Sports activities	Gambling (gaming, betting, bingo, lottery)
The Financial services (money transactions, loans/savings/bonds/credits,/deposits, shares)	Membership subscriptions	Postage stamps
Antiques items, art work or lookalike (if any public institutions buys it)	Medical care & treatment	Funeral/death plan insurance
TV license	Insurance	Vocational and Education training

UK VAT RATES

There are many items with different VAT rates that you can calculate using our VAT Calculator, while there are some items with no or zero rates that you can check and you’d be aware of. Let’s discuss them both without wasting any time.

UK Zero-Rated VAT Items

These are Zero-rated items, meaning you don’t have to pay anything regarding VAT; however, it’s recommended to contact the supplier/owner before purchasing.

Donated goods sold at charity shops
Eggs
Equipment for disabled people (inc. blind/partially sighted)
Fish (inc. live fish)
Fruit & vegetables
Live animals for human consumption
Meat & poultry
Milk, butter, cheese
Newspapers, magazines & journals
Nuts & pulses (raw for human consumption)
Prescription medicine
Protective boots & helmets (industrial)
Public transport fares (bus, train & tube)
Salt (culinary)
Sandwiches (cold)
Sewerage (domestic & industrial)
Shipbuilding (15 tonnes or over)
Construction & sale of new domestic buildings
Cooking oil
Transport in a vehicle, boat or aircraft (not fewer than ten passengers)
Water (household)
Building services for disabled people
Cakes (including Chocolate teacakes, and Jaffa Cakes)
Canned & frozen food (not ice cream)
Cereals
Chilled/frozen ready meals, convenience foods
Aircraft (sale/charter)
Bicycle & motorcycle helmets
Biscuits (not chocolate covered)
Books, maps & charts (including E-books)
Bread, rolls, baps & pitta bread
Brochures, leaflets & pamphlets

VAT FAQ’s

There is no VAT on Mot (check the source)

There are few, or you can say many, conditions on which businesses must have to pay VAT.

Businesses that are doing business or turnover £85,000 within any 12-month period are liable to pay and register themselves for VAT.

Once your business is VAT registered, you must have to charge the customer for VAT and have to pay VAT on goods or services you are going to buy or avail from other businesses.

No, there is no VAT applied to Schools.

As I mentioned above, educational institutes, vocational training and other services provided are exempted from VAT.

However, the School or educational institutes can reclaim VAT on goods or services.

The vat registration process is the same in the UK and other EU countries. You can learn more about it here.

VAT, or value-added tax, is paid by all European Union country residents and all UK residents. Consumers and businesses are obliged to pay VAT, which is paid on every service or good you’re availing. Furthermore, you can use our vat calculator UK for calculations.

No, you don’t have to pay any VAT on insurance, as both personal and commercial insurance or insurance products are VAT exempted. However, you still need to pay Insurance Premium Tax (IPT) (source)

No, the Council Tax is VAT exempted.

No, you don’t have to pay any VAT on Train Tickets. Even all public transport tickets are VAT exempted or fall in the zero-tax category.

The current rate of VAT in the UK is 20% now and you can calculate any amount from our vat calculator uk.

There are five definitive VAT schemes you can look upon.

No, there is no VAT on the flights or flight tickets.

Yes, there is 5% VAT on heating oil, and you’re obliged to pay for it. This reduced %5 is applied to domestic, residential and non-profit businesses by charity.

Yes, there is 5% VAT on electricity, and you’re obliged to pay for it.

This reduced %5 is applied to domestic, residential and non-profit businesses by charity.

Yes, there is 5% VAT on gas, and you’re obliged to pay it.

This reduced %5 is applied to domestic, residential and non-profit businesses by charity.

If your per annum turnover is above £85,000 in any 12-month period, then you’re obliged to pay VAT.

When you register yourself as a sole trader, you must’ve to pay VAT or charge VAT on all goods, products and services.

Nope, there is no VAT on Road Tax as it’s a separation tax.

There is 5% VAT on solid fuel, and you’re obliged to pay it.

This reduced %5 is applied to domestic, residential and non-profit businesses by charity.

There is a standard 20% VAT on wine you can also calculate this via vat calculator UK.
Also, you’ve to pay additional wine duty that depends upon the strength of the wine.

The first one is GROSS: which is the price including VAT, also known as “inc VAT”. NETT: which is the price excluding VAT, also known as “ex VAT” or “Net”.

Conclusion – VAT Calculator For Vat Calculation

Ultimately, Value Added Tax (VAT) is a tax on goods and services sold in the UK. The standard tax rate of VAT is 20% if you register for vat or are vat registered, but there are also reduced rates of 5% and 0% for certain goods and services.

There are several ways to calculate VAT, but the easiest way is to use an online tool for calculating vat rates is this VAT Calculator. These calculators are free to use and can be found on several websites like one is available on this website for you.

To use an online VAT Calculator, enter the gross amount of the goods or services you are buying, and the calculator will automatically calculate the amount of VAT you need to pay.

For example, if you buy a book that costs £10, the VAT rate is 20%, so you must pay £2 in VAT.

Online VAT Calculator are a quick and easy way to calculate VAT, and they can be used by businesses and individuals alike.

Here are some of the benefits of using an online free VAT calculator:

They are free to use.
They are easy to use.
They are accurate.
They can be used by businesses and individuals alike

Last but not least, you can use tool for calculating VAT, as this online VAT calculator is the best option to calculate VAT added to a net amount to find out how much is the net amount or subtracted.