Calculate VAT backwards, or forwards or remove VAT

Updated on May 27, 2022

 

Go to the 5% VAT Calculator

Reverse UK VAT Calculator
How to calculate UK VAT Backwards, Forwards or in Reverse

Prices excluding VAT must frequently be entered in the admin part of your website if you are in charge of an online store.

Your clients may prefer a “clean price” or a “rounded pricing” on the front end of your website (for example, £20.00, £25.00, or £100.00).

Adding VAT to this pricing is an option.

With the Vat Calculator, you can just enter a sum and the VAT part will be calculated for you. Clean rates for your e-commerce website are now possible.

Once you’ve added the pricing to your store, you’ll be able to display a clear ‘vat-inclusive’ amount on the front end.

On the front end of your website, this provides your customers with a clear price that includes VAT.

How to use the VAT Calculator

Once you’ve entered the amount you wish to work with, you can choose whether or not VAT is already included in that number.

The ‘Does this contain VAT?’ option can be checked or unchecked to indicate whether or not the price includes VAT.

How do you manually subtract VAT from a sum?
(Gross amount x (VAT percentage))))
Divide the 20% VAT rate by 1.20 to get 1.20.

Let’s have a look at an example:
£100.00 – £83.33 = £16.67

In this case, the VAT Amount is £16.67 on a £100.00 item sold.

The VAT Calculator will show that this sum is accurate.

Use the VAT Calculator for:-

Calculate the VAT.
Remove the value added tax (VAT) from a number.
Calculate the tax on a price or figure.
Calculate the portion of a price that includes VAT.
Calculate VAT by dividing the gross by the number of taxpayers.
Calculate VAT in the reverse direction (for example, 20% of £1.00 is 20% of £1.20). In reality, removing VAT does not save you £0.80.
Use the following formula to calculate the VAT content of a number that includes VAT.
Identify and compute the value-added tax (VAT Backwards.
Take into account the VAT component in a cost.
To figure out how much VAT you owe on a purchase, use the whole cost, which includes the VAT.
Take a 20% discount on a price or any other figure.
Subtract or include VAT in a number.
Back-calculate the tax.
Demonstrate the process of calculating the 20% VAT content
Show how to subtract VAT from a number that includes VAT.
The VAT Calculator will be returned to you.

How do I work out VAT on a price?

Multiply the price without VAT by 1.2 to get the price with VAT (20 percent).

To get a pricing that includes VAT, multiply the price without VAT by 1.05 percent.

Is VAT Calculated on net or gross?

In order to calculate VAT on a net number, the net amount is multiplied by 100% and the VAT percentage is applied to the gross figure.

Adding 20% VAT is a straightforward calculation but reverse VAT can be tricky

It’s simple to tack on 20% VAT to a pricing (simply multiply by 1.2)

Multiplying £100.00 by 1.2 is £120.00 to add 20% VAT, for example

It’s not as simple as taking 20% of $120 (which leaves $96.00) to figure out what the VAT component of $120 is.

Notice the difference between adding 20% and subtracting 20%.

To figure out the VAT part, you cannot simply deduct 20% from the VAT included price. This makes it difficult to figure out VAT “backwards” or “reverse.”

As a service to you, we’ve created this handy little VAT Calculator above, which is capable of calculating VAT inversely, if you like.

How does VAT Work?

A business must charge an additional 20% (or whatever the VAT rate is) on all sales when it becomes VAT registered, and the VAT is deducted when the invoice is paid. Every three months, businesses must also pay HMRC their VAT Return, from which they deduct any VAT owed to their suppliers.

What is the current VAT (Value Added Tax) Rate in the UK in 2022?

In the United Kingdom, there are three fundamental rates of VAT that are applied to both goods and services.

The Standard VAT rate in the UK is 20%

This is the most common VAT rate in the United Kingdom, and it covers the majority of products and services.

This rate can be calculated by entering a figure into the VAT Calculator above and then subtracting that number from the VAT rate.

Since the 4th of January 2011, a 20% VAT rate has been in effect.

Prior to this, the rate was 17.5 percent.

The Reduced VAT Rate is 5%

The Reduced VAT Rate is applied to certain goods and services (e.g. Home Energy)

The UK government has also implemented a 5% VAT rate from July 8th, 2020 to January 12th, 2021 as a short-term solution.

Who does the new 5% VAT Rate apply to?

Businesses that make’supplies of admissions,’ which are now taxable at the regular rate, will be subject to a new 5 percent tax rate beginning in 2019..

According to government examples, these include:

Similar cultural activities and facilities include amusement parks and museums as well as amusement parks and circuses.

However, the rate can include goods not included in the admission fees, such as parking or food.

In order to learn more about the new 5% VAT rate, you can visit the official government website.

The Zero Rate VAT is 0%

In the case of food and children’s clothing, the VAT rate is zero percent.

Helpful VAT Links

How to Get a VAT Number

VAT Taxable Revenue and when VAT registration is required

VAT Assistance from the UK Government

Products and services are taxed at different percentages based on their value.

Learn more about how long you should maintain VAT records.

Making Tax Digital for VAT 2020

For VAT, Making Tax Digital will take effect in April 2019 as announced on July 13th, 2017 by Treasury Financial Secretary and Paymaster General.

If your company has an annual revenue in excess of £85,000, you will have to store your records digitally for VAT purposes alone from that date onwards. HM Revenue and Customs will require you to submit your VAT returns through MTD functionally compatible software.

Learn more about MTD and how it will impact your business.

How do I calculate VAT on my calculator?

Divide the gross amount by 1 + the VAT % to arrive at the VAT amount. Subtract from the total amount (i.e. if it is 20%, then divide by 1.20).

I am trying to work out the gross and net amount but I only know the VAT element?

Calculating gross and net amounts when only VAT is present.

Multiply by five to account for a 20% VAT charge.

The VAT part, for example, is £20.

£100.00 is the result of multiplying £20.00 by five.

Adding this to the VAT Calculator will show that multiplying by five is correct.

At 20% VAT, the price of a pound is $120.

What is the Bank Account and Sort Code for making VAT Payments?

Use the following bank account information to send payments to HMRC for VAT.

08 32 00 is the sort code.

11963155 is the account number.

HM Revenue and Customs VAT Account Number

What is the VAT Phone Helpline

Taxpayers can call the HMRC’s VAT hotline for help.

At a distance of three hundred and seventy-five millimetres
If you have any questions about VAT when travelling outside of the United Kingdom, please contact

Phone number: +44 2920 501 261
An email address for submitting written VAT questions to HM Revenue and Customs – VAT Alexander House 21 Victoria Avenue, Southend-on-Sea SS99 1BD, United Kingdom Written Enquiries Team

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