To calculate UK VAT on any item simply insert the price or amount before tax. The price inclusive of VAT will then display automatically in the box below. This online vat calculator works with the current UK VAT rates of 20% which are set by HMRC.
You can also calculate vat backwards by using this reverse VAT calculator.
Vat or value-added tax was introduced in the UK in 1973 as a replacement for purchase tax.
There are three bands of VAT; the standard rate is 20%, the reduced rate is 5% and zero rate is 0%.
Reduced rates during Covid-19 crisis
HMRC has also announced some temporarily reduced vat rates for certain sectors during the coronavirus pandemic.
The reduced rates apply to the hospitality sector, hotel and holiday accommodation and admission to some attractions.
These emergency rates were applied from 15th July 2020 to 12th January 2021.
For further information see the government website here.
This calculator uses a simple calculation to work out a GROSS price inclusive of vat.
Use it for your business or for personal use.
What is VAT?
Value Added Tax is a business tax collected by the government, specifically HMRC, on the sale of goods and or services.
What is the current UK VAT rate?
Standard rate VAT is 20%. This has been in place since January 2011. Before this date, the rate of VAT was 17.5%.
How do I calculate VAT?
To calculate a price inclusive of VAT, multiply the NET amount (that is the amount before tax) by 1.2 to arrive at the GROSS amount (the amount inclusive of VAT). This calculation is based on the standard UK VAT rate of 20%. To calculate the reduced rate of VAT, use multiply the NET amount by 1.05 in place of 1.2.
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