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Free VAT Calculator Online
Using our free VAT calculator, you can add or remove VAT from any value amount entered. The standard rate of VAT in the UK is currently 20%, so the VAT tax calculator is set at that as default. However, the VAT rate may vary depending on the product or service bought/sold, and the country.
What does VAT stand for?
VAT is an acronym for Value Added Tax and was introduced in the UK in 1973.
What is VAT?
VAT is a tax imposed on most goods and services in the United Kingdom. VAT is a consumption tax that is levied at each stage of the supply chain, from production to final sale to the consumer. Businesses registered for VAT must charge VAT on the goods and services they supply and pay the VAT they have charged to HM Revenue & Customs (HMRC). They can also claim back any VAT they have paid on their business expenses.
What are the different rates of VAT in the UK?
As of February 2022, there are 3 different rates of VAT that apply in the UK. Those being, 20%, 5% and 0% depending on the products or services bought and sold.
| Rate | Charge | Applies to |
| Standard | 20% | Most goods and services |
| Reduced | 5% | Some goods and services such as home energy, children’s car seats, residential property conversions, etc. |
| Zero | 0% | For a small set of products and services, there is a 0% rate. This applies to things such as kids clothing and physical books. |
For hospitality, holiday accommodation and attractions there was a temporary 12.5% VAT rate to aid the industry during covid. This lowered rate was removed on 31 March 2022 when the standard UK rate of VAT then applied.
How to Calculate VAT Tax Online
- Simply enter the original amount.
- Enter the VAT percentage. (By default the online VAT calculator rate is set for UK VAT calculation.)
- Choose vat calculation operation (include or exclude),
- Press Calculate button to calculate VAT amount.
How to Calculate VAT Tax By Hand
Adding VAT
If you want to add VAT to a amount, you first need to divide the original amount by 100 and then multiply by 100 plus the VAT Tax percentage.
Let’s take an example of adding VAT of 20%:
- We will start with a amount of £200.
- £200 divided by 100 is £2.
- We then take the £2, and multiple that by 100 and the 20% VAT for a total of 120.
- 2 x 120 is 240.
With the above adding 20% VAT to the original amount of £200, brings it to a grand total of £240.
Removing VAT
If you want to remove the VAT Tax from a amount, you need to take the original amount and divide that by 100 and the VAT Tax percentage combined. (So for a UK VAT of 20%, it would be 120). You then multiply the result by 100.
Let’s take an example of removing VAT of 20%:
- We still start with a amount of £200
- We divided that amount by 120 and then multiply the result by 100.
- £200 divided by 120 and then multiplied by 100 equals £166.62.
With the above, removing 20% VAT from the original amount of £200 leaves us with the net amount of £166.62