Free VAT Calculator

Whether you are adding VAT onto the price of your products and services – or need to work out how much VAT you need to pay to a supplier, our handy VAT calculator can save you time.

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How to work out VAT

Adding, removing and calculating VAT for your invoices can be done with a couple of clicks by using our VAT calculator. If you know the price without VAT added on:

  • Input the price exclusive of VAT
  • Check the rate is correct (it’s pre-set to the standard rate of 20%)
  • Click the ‘Add VAT’ button

If you know the price including VAT you can also:

  • Input the price inclusive of VAT
  • Check the VAT rate is right for your transaction (again, it’s pre-set at 20%)
  • Click the ‘Remove VAT’ button

This will now let you know the price without VAT and the amount of VAT being charged.

What you need to know about VAT

VAT, or Value Added Tax, is applied to most goods and services. In the UK, the standard rate is currently 20% and this will be the figure you use when calculating VAT in the majority of instances.

However, there are some goods and services which have a reduced rate of 5% such as car seats for children, some which have a ‘zero rate’ such as books, most foods and clothes for children and other items which are completely exempt such as postage stamps and financial transactions.

If you’re not sure which VAT rate is appropriate it’s best to consult HMRC’s full list. Our calculator also lets you adjust the VAT rate if you need to calculate this for reduced rate items.

VAT is a tax which is collected by businesses on behalf of the Government and it’s compulsory for anyone with an annual turnover of more than £85,000 to register and charge VAT on the products and services they sell. For more on whether you need to register for VAT, see our guide here.

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