UK VAT FAQ

The current rate of VAT in the UK is 20% now.

Excluding VAT means that you’re excluding the taxes from the original product price.

If you do net amount x 1.20 you can easily calculate 20% VAT, after that you’ll get the gross amount. Furthermore, if you need to know how much VAT is the required amount, then you can calculate the gross amount / 1.20 = net * 0.20. That’ll be the final result VAT included.

The formula to calculate VAT is dead simple. You just have to multiply your amount by 1.05 for a 5% VAT rate, by 1.20 for a 20% VAT rate, or you can leave the price/amount as is for a 0% VAT rate

This is the current UK standard VAT rate. Further, you can understand VAT is a kind of sales tax that is added to most of the products and services in the UK.

VAT is calculated to differentiate between output tax and input tax. Input tax is paid by the seller on certain products and services.

This varies from country to country the USA has no VAT, the UK has 20% VAT, Turkey has 18%, Australia has 10% GST, Canada has 10% GST and so on.

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”.

It means inclusive VAT and in other simple words the final amount of product or service price that includes the value of tax.

In UK it means the same as it does in other part of the worlds, such the total amount of service or product that includes the value of tax