VAT Calculator - Online

The online VAT calculator computes VAT (Value-Added Tax) for your business. It can add or remove VAT from a price with ease.

The current standard VAT rate in the UK is 20%.

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# Net Amount VAT Rate VAT Amount Gross Amount

How Does the VAT Calculator Work?

  1. First, input the amount to which the VAT needs to be added or removed.
  2. Input the percentage rate of VAT. In the UK, the current standard VAT rate is 20%. So, it's set to 20%. But you can change it if required.
  3. Now press the 'Add VAT' button to get the price including VAT and press the 'Remove VAT' button to get the price excluding VAT.
  4. The tool returns the Net amount, VAT rate, VAT amount, and Gross amount in table form. Each calculation will be displayed in the table row.
  5. To refresh the calculator, press the 'Reset All' button.

What is a Value-Added Tax (VAT)?

The VAT (value-added tax) is a consumption tax added to the price of goods and services at each stage of the supply chain. It's applied from production to the point of sale. Each business in the supply chain collects VAT on its sales and passes it along the supply chain.

The VAT system is used by more than 160 countries and is most commonly found in the UK and European Union (EU) countries.

What are the VAT Rates in the UK?

In the UK, there are three main VAT rates:

  1. Standard Rate (20%): It's the default rate that applies to most goods and services.
  2. Reduced Rate (5%): This rate applies to certain goods and services, such as children's car seats, fuel, and some health products.
  3. Zero Rate (0%): It includes most food and drink items, children's clothing, books, plants and seeds, and animal feeding products.

How to Add VAT to a Net Price?

The following formula is used to find the total price including VAT based on the Net price.

Total Price = Net Price + ( Net Price × VAT Rate )

Example:

Suppose, the Net price is £117 and the VAT rate is 20%. Calculate the price including tax.

Solution:

First, convert the VAT rate into decimal.

VAT Rate = 20 / 100 = 0.20.

Now put the values in the formula.

Total Price = £117 + ( £117 × 0.20 ) = £117 + £23.40 = £140.40.

Calculating VAT Amount

VAT Amount = Net Price × VAT Rate.

VAT Amount = £117 × 0.20 = £23.40.

There is one more formula to get the price including VAT.

Total Gross Price = Net Price × ( 1 + VAT Rate )

Example:

Net price = £244 and VAT rate = 20%. Find the Gross price.

Solution:

Total Gross Price = £244 × ( 1 + 0.20 ) = £244 × 1.20 = £292.80.

VAT Amount = £244 × 0.20 = £48.80.

How to Remove VAT from a Gross Price?

The following formula is used to find the Net price (price before VAT) based on the Gross price.

Net Price = Total Gross Price / ( 1 + VAT Rate )

Example:

Suppose, the Gross price is £289 and the VAT rate is 20%. Calculate the price before tax.

Solution:

Net Price = £289 / ( 1 + 0.20 ) = £289 / 1.20 = £240.83.

VAT Amount = £289 - £240.83 = £48.17.