FREE ONLINE
VAT CALCULATOR UK
Do you want to calculate VAT accurately in seconds? Are you also tired of doing the maths? Use our free UK VAT Calculator, which is helpful for business owners, contractors, and people like me who run away from maths.
- • 20% – Most goods and services
- • 5% – Energy, children’s car seats
- • 0% – Food, books, children’s clothes
About Value Added Tax
Value Added Tax – also known as VAT is a Tax upon Sale or purchase of goods in UK. It was introduced inthe UK in 1973 as an alternative to purchase tax and selective employment tax (a condition to join the European Economic Community).
In 2008 Pre-Budget Report, Chancellor Alistair Darling said VAT would drop from 17.5% to 15% from 1 December 2008 until the end of 2009. This cut, costing about £12.4 billion, was meant to help everyone by giving shoppers more money in their pockets during the financial crisis. He described it as giving back around £12.5 billion to the public to boost spending.
How much is VAT in the UK?
The VAT (also known as GST in some countries) is charged 20% as a standard tax and 5% as reduced tax in the United Kingdom.
| Reduced-rate items | Zero-rated items | VAT exempt items |
|---|---|---|
| Children’s car seats | Children’s clothes and shoes | Betting and gaming |
| Home gas and electricity | Everyday food (not in restaurants or hot takeaways) | Banking, credit and insurance |
| Energy-saving materials (like insulation, solar panels) | Books, newspapers, magazines, e-books | Postage stamps |
| Converting homes into flats or houses | New homes and long-term home leases | Schools, colleges, training |
| Women’s sanitary products | Motorcycle and bike helmets | Health services (doctors, dentists, opticians) |
| Mobility aids for older or disabled people | Goods sent (exported) outside the UK | Charity fundraising events |
| Stop-smoking products | Prescription medicines and medical equipment | Renting or selling some land and buildings |
Types Of VAT
Standard Rate VAT
This is the current VAT rate, currently set at 20% in the UK. Most goods and services fall into this category, such as electronics, adult clothing, furniture, restaurant meals, soft drinks, and general household items. If something does not qualify for a special reduced or zero rate, it is almost always charged at the standard rate.
Reduced Rate VAT
The reduced rate is 5% and applies to some items that the government wants to keep more affordable such as that of gas or oil used for home energy or other energy saving supplies and the children safety products such as children car seats!
Zero Rate VAT
Goods and services that are taxed at 0% still count as taxable supplies, meaning businesses can reclaim VAT they paid on related costs, even though they do not charge VAT to customers. Examples include most food, children’s clothes and footwear, books, newspapers, and passenger or public transport.
Exempt from VAT
Some goods and services are exempted from paying VAT, such as those in education, financial services, fundraising events, the selling or leasing of commercial properties, and the health care sector.
The major difference between the Zero VAT Rate and the Exempt from VAT is that Businesses cannot claim any VAT, nor is there any need to report it; however, in the Zero VAT Rate case, the VAT is not charged but is meant to be reported.
Outside the Scope of VAT
Some services are not charged VAT and are known as being Outside the Scope of VAT, Services or Goods upon which VAT can’t be charged are the NHS Services, paying fines, paying salaries, welfare services by organizations, tolls collected by roads managed by public authorities, or donations.
Who Needs to Pay VAT?
The business in UK or Isle of Max which have yearly turnover of 90’000£ or more are required to be registered with HMRC and pay VAT. It is required to be registered in under 30 days after when they have exceeded the yearly turnover requirement. Even those business which are not eligble as per the requirement of 90000£ can register too.
Once they are registered, they are required to collect the VAT on all taxable sales and pay it to HMRC (also eligble to reclaim input VAT). Click here to view which goods or services are required to be paid vat upon or are exempted or else are charged reduced VAT.
How to Get Your VAT Number?
Getting a VAT number in the UK starts with checking if you need one. If your business makes more than £90,000 in sales in a year, or you expect to in the next 30 days, you must register. You can also choose to register earlier if you want.
You usually apply online on the HMRC website using a Government Gateway account. You’ll be asked for your business details, how much you earn, and proof of identity. Some special cases may use a paper form instead.
After your application, HM Revenue and Customs usually sends you a certificate with your VAT number on it. From then, you must put this number on invoices, add VAT to your sales, and send VAT returns every few months.
Read More About VAT Registration:
How to Register for VAT in the UK?
VAT Calculation Formulas
Add VAT Formula
To add VAT to a price:
Price with VAT = Original Price × (1 + Vat Percentage ÷ 100)
Example: If something costs £100 and the VAT percentage is 20,
Price with VAT = 100 × (1 + 20 ÷ 100) = £120
Remove VAT Formula
To find the price before VAT:
Original Price = Price with VAT ÷ (1 + Vat Percentage ÷ 100)
Example: If the total price is £120 and the VAT percentage is 20,
Original Price = 120 ÷ (1 + 20 ÷ 100) = £100
How To Use the UK VAT Calculator
First of All, open a trusted website like MyVATCalculator.co.uk
Then choose the Add VAT Mode or Remove VAT Mode & Input the values. The Add VAT Mode:
The Remove VAT Mode:
Get a complete summary of Gross Amount, VAT Amount (according to percentage choosed either 20% Standard or 5% Reduced or the Custom Option) & Net Amount in the Break Down Tab
What are the features of InstantVatCalculator?
Accurate results
Unlike any other calculator, our calculator always rounds the number down, so the calculation is always accurate.
Reverse mode
Our Calculator shows both Net Price and Gross Price in both modes: Add VAT Tab Mode and Remove VAT Tab Mode.
Flexible tax rates
MyVATCalculator is not limited to the standard UK VAT Tax Rate of 20% but you can adjust it for 5% (Reduced VAT Tax Rate) or the Custom VAT Tax Rate option.
Works without internet
The application version of this VAT Calculator Web App is designed to be offline so that you can calculate the tax anywhere, any time.
Export and share results
You can copy the results with a single click and also share them with a direct link instantly.
Calculation history
We are working to make the tool better with feedback we receive and currently working on the calculation history feature, We encourage our belove users meaning you guys to share feedback with us through here, so that we assure that best service is offered all the time!
UK VAT rate history
| Date | VAT Rate | What Happened |
|---|---|---|
| 1 April 1973 | 10% | VAT started in the UK, replacing the old Purchase Tax. |
| 29 July 1974 | 8% | Main rate cut to 8%. A higher rate of up to 25% was added on petrol and some luxury items. |
| 18 June 1979 | 15% | Rate increased to 15%. The special higher rate was removed, so most goods had one rate. |
| 1 April 1991 | 17.5% | Main VAT rate raised from 15% to 17.5%. |
| 1 April 1994 | 17.5% | A lower rate (8%) started for home gas and electricity bills. |
| 1 September 1997 | 17.5% | The lower rate on gas and electricity was cut from 8% down to 5%. |
| 1 December 2008 | 15% | Rate dropped from 17.5% to 15% for one year to help during the financial crisis. |
| 1 January 2010 | 17.5% | Rate went back up to 17.5% after the temporary cut. |
| 4 January 2011 | 20% | Rate increased to 20%, where it still is today. |
VAT receipts in the United Kingdom for the last 20 years (in billion GBP)
VAT Rates in the European Union
| Country | Standard Rate | Reduced / Other Rates |
|---|---|---|
| Austria | 20% | 10%, 13% |
| Belgium | 21% | 6%, 12% |
| Bulgaria | 20% | 9% |
| Croatia | 25% | 13%, 5% |
| Cyprus | 19% | 5%, 9% |
| Czechia (Czech Republic) | 21% | 12%, 0% |
| Denmark | 25% | none |
| Estonia | 24% | 9% |
| Finland | 25.5% | 14%, 10% |
| France | 20% | 10%, 5.5%, 2.1% |
| Germany | 19% | 7%, 5.5% (special cases) |
| Greece | 24% | 6%, 13% |
| Hungary | 27% | 5%, 18% |
| Ireland | 23% | 4.8%, 9%, 13.5% |
| Italy | 22% | 4%, 5%, 10% |
| Latvia | 21% | 5%, 12% |
| Lithuania | 21% | 5%, 9% |
| Luxembourg | 17% | 3%, 8%, 14% |
| Malta | 18% | 5%, 7% |
| Netherlands | 21% | 9% |
| Poland | 23% | 5%, 8% |
| Portugal | 23% | 6%, 13% |
| Romania | 21% | 5%, 11% |
| Slovakia | 23% | 5%, 10% |
| Slovenia | 22% | 5%, 9.5% |
| Spain | 21% | 4%, 10% |
| Sweden | 25% | 6%, 12% |
Various VAT Rate Schemes
Flat Rate VAT Scheme
The Flat Rate VAT Scheme is for small UK businesses with sales under £150,000. Instead of working out VAT on every sale and purchase, you just pay HMRC a fixed percentage of your total sales (including VAT). The rate depends on your business type, and you get 1% off in your first year.
You normally can’t claim back VAT on purchases, except for big items over £2,000. If you spend very little on goods, you may have to use a higher rate of 16.5%. Businesses must leave the scheme if sales go over £230,000. This is a summarized version and you can view a much detailed version of Flat Rate VAT Scheme Here!
Standard Accounting Scheme
The Standard VAT Scheme is the normal way of paying VAT. Businesses submit returns every 3 months, showing the VAT they charged on sales and the VAT they paid on purchases. VAT is due to HMRC based on the invoice date, even if a customer has not paid yet. This works well for businesses with steady cash flow, but it can be harder for those whose customers take a long time to pay.
Annual Accounting Scheme
With the Annual Accounting Scheme, you only file one VAT return per year instead of four. To spread the cost, you make advance payments towards your VAT bill throughout the year, and at the end you make a final balancing payment or get a refund. It is open to businesses with a taxable turnover of £1.35 million or less. This scheme helps with budgeting and reduces admin but may not suit businesses that regularly reclaim VAT.
Cash Accounting Scheme
The Cash Accounting Scheme lets you pay VAT to HMRC only when your customers pay you, and reclaim VAT only when you pay your suppliers. This is different from the standard scheme, where VAT is due on the invoice date. It is available to businesses with a turnover of £1.35 million or less. This scheme is useful if customers often delay payment, as it protects your cash flow.
Final Words
This VAT Calculator is an easy to use and free online web app. All the information covered in this website is extracted from official sources such as the the official UK GOVT Website. Don’t forget to check out our helpful guides as well!
We will make sure to keep updating the web app and the content so that we always comply with the statements of GOVT of UK! Make sure to share the feedback here, so we can improve our VAT Calculator.