Simply enter the amount you need to calculate VAT with, and then choose one of the 2 options available: Add VAT or Remove VAT.
How to use the online VAT Calculator
Once you enter a value added tax rate, e.g 17.5, you can use the calculator to either remove vat, or add vat. Depending upon which of the 2 options you choose from, you will either calculate the gross total including VAT (VAT inclusive), or the Net total excluding VAT from a Gross amount (VAT exclusive).
The online VAT Calculator is provided free of charge, the aim of it is to help calculate VAT in a quick, and easy manner.
Motivation behind the Online VAT Calculator
Having had to regularly perform VAT calculations myself, and not being the most savvy with mathematics, I decided to create a calculator that can add vat to a net amount or remove it from a gross amount. Removing vat from the gross amount, to get the net amount, is sometimes referred to as a reverse calculation.
The calculator can be used for a range of situations, for instance, if you have been charged a gross amount, and have no indication of the net amount on an invoice or receipt, you can use the calculator to work out the correct net figure.
What is Value Added Tax (VAT)?
It’s a tax that is added when you pay for goods or services. There are different rates, the rate depends upon the type of goods or services. The calculator above is flexible, and accepts any vat value.
The current standard UK VAT rate is 20%
The standard VAT rate increased to 20% on 4 January 2011, previous to then it was 17.5%.
UK Vat rate
% of VATWhat the rate applies to
Standard rate of VAT20%Most goods and services
Reduced rate of VAT5%Some goods and services, eg children’s car seats and home energy
Zero rate of VAT0%Zero-rated goods and services, eg most food and children’s clothes
You don’t have to pay VAT on everything; for example, postage stamps, monetary and property exchanges are all exempt.
The VAT rates which businesses charge relies depends upon what goods and services they provide.
Other value added tax rate will differ.
Standard rate
Unless otherwise stated, the standard VAT rate is applied to goods and services.
Reduced rate items
The reduced rate is often applied in a discretionary fashion, for example from 15 July 202 to 31 March 2021 the reduced rate is/was applied to takeaway meals and food served in restaurants, as part of the Eat Out to Help Out scheme.
Another example where the reduced VAT rate is applied is on energy-saving materials if you are over 60, or in receipt of certain benefits.
Zero rated items
Generally, most food and drink fit for human consumption is zero rated, but not all, for example, alcoholic drinks, confectionary, and takeaways are all VAT inclusive, meaning they are charged at the standard rate.
Common places to see VAT calculation applied
Often you’ll find VAT calculation on invoices where products, goods or services have been purchased. Some companies and businesses display prices inclusive of VAT, whereas some don’t, you may get caught out when shopping if you are not aware of this, especially when arriving at to the point of sale, where, it is a surprise to see how much extra you can pay due to the extra tax (VAT calculation).
What is Value Added Tax (VAT)?
It’s a tax that is added when you purchase goods or services. There are different rates, the rate depends upon the type of goods or services. The calculator above is flexible, and accepts any vat value.
The price of adding VAT
For many businesses customer experience is key to selling products via a website. Website owners may want to consider having options to display prices with and without tax, however, this will depend upon whether they are business to business or not, or are willing to display this to each customer (there may not be any value in it).