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Calculate VAT Online & Reverse VAT Calculator
How is VAT calculated ? You don’t even have to know this because of this Online VAT Calculator which we are providing. If you are curious about Current UK VAT Rate that is 20%.
No need to find out the whole process for vat calculation because this calculator will help you calculate your vat without knowing any process. Just fill all the required information. Select either you want to simply calculate or reverse calculate vat. After Putting all the required information click the Calculate Button and get your Answer.
What is VAT?
VAT is also called Value Added Tax. Any product sold within a country depending upon its value there is a certain amount of VAT on it. This is an indirect tax you are not paying it to the government directly. eg Company created a product and sent it to the market a customer bought it and pays VAT while purchasing.
But Company will directly pay VAT to the government and that is collected by customers. Government gets that VAT and uses it for running the country and other tasks. Government also adds VAT to maintain the ratio of resources.
The Flat Rate VAT Scheme
Businesses whose annual VAT taxable turnover is less than £150,000 are eligible for the Flat Rate Scheme for VAT. Accounting tasks and tax calculations could be done faster using a flat-rate scheme.
In standard VAT accounting, you pay the difference between the VAT you charge and the VAT you pay to HMRC (or claim back). The exact amount of VAT you pay depends on the type of business you own.
Pros of Flat Rate VAT
- Investing less time in your accounts means you spend more time on your business. You still need to enter VAT on your invoices as you would for normal VAT accounting.
- During your first year as a VAT registered entity, your flat rate percentage is reduced by 1% until the day before your first anniversary as a VAT registered entity.
- The process of calculating what VAT can be reclaimed on purchases is now seamless.
- You do not need to worry about errors when there is less chance of them occurring.
- HMRC knows exactly what percentage of your take will be your responsibility.
Cons of Flat Rate VAT
- As you generally can’t reclaim any VAT on your purchases, you generally buy standard-rated items.
- Under normal VAT accounting, you receive regular VAT reimbursements.
- You have a lot of exempt sales.