Free VAT Calculator

Updated on May 28, 2022

When it comes to figuring out how much VAT to include in your products and services or how much VAT to pay to a vendor, our free VAT calculator is a lifesaver.

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How to work out VAT

Using our VAT calculator, you can quickly and easily add, remove, and calculate VAT for your invoices. In the event that you are aware of the price before the addition of VAT:

Input the price excluding VAT in the field provided.
In order to ensure the pre-set rate of 20% is correct, double-check the rate.
Please select “Add VAT” to proceed.
In addition, if you know the total cost, you can also:

Enter the total cost, including VAT.
Make sure the VAT rate is appropriate for your purchase (again, it is set at 20%)
Simply click on the ‘Remove VAT’ button
As a result, you will now be aware of the item’s price as well as the VAT that is applied.

What you need to know about VAT

Most goods and services are subject to Value Added Tax, or VAT. The typical VAT rate in the UK is presently 20%, and this will be the number you use in the majority of cases when computing VAT.

A 5% discount is available on things like child car seats, while a “zero rate” applies to items like books, most meals, and children’s clothing; some items, including postage stamps and bank transactions, have no tax attached to them at all.

You should reference HMRC’s complete list if you are unsure of the proper VAT rate. Please note that you can also use our calculator to calculate VAT at a reduced rate if necessary.

Businesses collect VAT on behalf of the government, and everyone with a yearly revenue of more than £85,000 is required to register and charge VAT on the goods and services they provide. See if you have to register for VAT if you want to know more.