The VAT Calculator

The VAT Calculator helps you calculate the VAT to add or subtract from a price, at different rates of VAT. Value Added Tax (VAT) is charged on most goods and services purchased in the UK. Most products are charged at the standard rate of 20% but some are charged at a reduced rate of 5%, and others are exempt from any VAT charges. This VAT calculator will help you to see how much tax should be added to a price, or how much of the total price was made up by VAT. The VAT Calculator uses the current tax rates from HMRC (Her Majesty's Revenue and Customs) to calculate value added tax information.

VAT is short for Value Added Tax and is a tax on goods and services provided by businesses in the UK. Businesses have to register for VAT when their annual turnover reaches a certain limit (currently 73,000). Once they have registered for VAT, the businesses have to charge their customers the appropriate VAT on any products they sell. They are also able to claim back any VAT they pay when buying supplies, and they send the difference to the taxman.

VAT is charged at 3 different rates, depending on the product being sold:

  • Standard rate - 20%
  • Reduced rate - 5%
  • Zero rate - 0%

The standard rate of 20% is the default rate that is applied to all goods and services unless they have been specified as being at a lower rate or exempt. Examples of reduced rate (5%) items are domestic fuels and mobility aids for the elderly. Zero-rated items like food and books have no additional VAT cost, but this is not the same as being VAT-exempt. However, the distinction only affects the businesses selling the goods, not consumers purchasing them.

Start calculating VAT at The VAT Calculator.

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