VAT Calculator

Updated on June 30, 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).

This pricing may also include VAT, if you like.

Using the Vat Calculator, you can simply enter in a rounded value and it will calculate the VAT portion automatically. Your ecommerce site can now display “clean prices” thanks to this.

This means that you may add the pricing to your shop with confidence that your customers will see a clean, ‘vat-inclusive’ amount.

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.

To display a price that includes or excludes VAT, simply check or uncheck the ‘Does this contain VAT?’ box.

How to remove VAT from a sum manually

Add 1 percent to the total to get the net amount.
Because the VAT rate is 20%, multiply the answer by 1.20.

Example:

£83.33 = £100.00 divided by 1.20
£16.67 is the result of taking 83.33 pounds out of the original sum of $100.00.

As a result, the VAT on a $100.00 item is £16.67.

The VAT Calculator can be used to verify if this sum is correct.

The  VAT Calculator can be used to:-

  • Calculate VAT.
  • Remove VAT from a figure.
  • Work out the VAT on a price or figure.
  • Calculate the VAT inclusive portion of a price for a product or service.
  • Calculate VAT from gross.
  • Calculate VAT backward
    (e.g. adding VAT to £1.00 is £1.20, add 20%. Removing VAT is not £0.80 – try the VAT Calculator to see)
  • Calculate the VAT content of a number, which is inclusive of VAT.
  • Calculate VAT backwards.
  • Calculate the VAT element of a price.
  • Calculate VAT from the total price of a product or service which includes VAT.
  • Take 20% off a price or any number.
  • Add or subtract VAT from a number.
  • Calculate sales tax backwards.
  • Show how to work out VAT content at 20%
  • Show how to get a number that includes VAT to exclude VAT

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).

If you want to know how much it costs to include VAT (5%), multiply the price without VAT by 1.05

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

Taking 20% of $120.00 (which leaves £96.00) is an easy way to figure out how much VAT there is on that amount.

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

You cannot just subtract 20 percent from the VAT-included price to calculate the VAT part if you want to compute VAT “backwards.”

This simple VAT Calculator above calculates VAT “backwards,” “forwards,” or “reverse” to make your life easier.

How does VAT Work?

In order for a company to be VAT-registered, it must charge an additional 20% of all sales (or whatever the vat rate is). VAT is taken from the invoice payment at that point. 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%

With this VAT rate, nearly all goods and services in the UK are taxed.

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, there has been a 20% VAT rate.

The prior figure was 17.5%.

The Reduced VAT Rate is 5%

Some goods and services are exempt from the standard VAT rate and are therefore subject to the reduced rate (e.g. Home Energy)

For the time being, the UK government has additionally imposed a 5% VAT rate from 8th July 2020 to 12th January 2021.

Who does the new 5% VAT Rate apply to?

Businesses that provide supplies of admissions’ that are now taxed at the regular rate are subject to the new 5% levy.

The following are some examples offered by the government:

These include theme parks, circuses, fairs, museums and theatres, as well as related cultural events and facilities.

However, it is possible to include incidental things that are included in the admission costs in the pricing.

Visit the government’s website to learn more about the new 5-percent VAT rate.

The Zero Rate VAT is 0%

Examples of items and services with a zero percent VAT rating include food and children’s clothing.

Helpful VAT Links

How to Become a VAT Registered Business

What is the amount of taxable turnover that requires VAT registration?

VAT Assistance from the UK Government

Varying goods and services are taxed at different rates by the government.

Learn more about how long you should maintain VAT records.

Making Tax Digital for VAT 2020

When the Treasury’s financial secretary and the Paymaster General announced Making Tax Digital for VAT would go into force in April 2019, it was a big deal.

Businesses who generate more over the VAT threshold (currently £85,000) will be required to use Making Tax Digital (MTD) functional compliant software to retain their records digitally (for VAT purposes only) and submit their VAT return information to HM Revenue and Customs (HMRC) after that date.

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

How do I calculate VAT on my calculator?

Divide the gross amount by 1 + the VAT % to arrive at the VAT amount. (For example, if the percentage is 20%, divide the result by 1.20 to arrive at the gross amount.)

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

If you simply have VAT, here’s how to calculate gross and net values.

To account for a 20% VAT, multiply the number by 5.

The VAT part, for example, is £20.

£100.00 is the sum of £20.00 divided by five.

The VAT Calculator will confirm that multiplying by 5 is correct once you’ve entered this in.

At a VAT rate of 20%, £100.00 becomes £120.00.

What are 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.

Taxpayer ID – HMRC

What is the VAT Phone Helpline

HMRC offers a toll-free number for people who need help with their VAT returns.

0300 200 3700

Outside of the United Kingdom, if you have questions about VAT, please contact us.

+44 2920 501 261

Address for written VAT enquiries

Customs and VAT HM Revenue and Customs Alexander House 21 Victoria Avenue, Southend-on-Sea SS99 1BD, United Kingdom Written Enquiries Team

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