VAT Calculator – Online Add or Remove VAT Rate in UK

We have created a vat calculator because of some changes have occurred in value-added tax rates. This online calculator will help the business community or individual users to add or remove vat in the net amount or gross amount subsequently according to the changes in vat rates.

How to Use VAT Calculator

  • Enter the value of your price or income on which you want to calculate value-added tax.
  • If you want to exclude the amount of tax from your price or income, you need to select the exclude VAT option.
  • In case you want to add the value of tax in your price or income, you need to select add VAT option.
  • Enter the tax’s value that you want to add in or exclude from your price or income, in percentage (%) box.
  • Now press the calculate button.

You will get the results below. You can repeat the method to find or compare the amount of value-added tax.

VAT-calculator

Value Added Tax (VAT)

The business imposes Value-added tax (VAT) on the price of a product or service at each stage of the supply chain like production, distribution, or sale to the end consumer. It is a tax on business transactions and often compared to a sales tax. If you are wondering how VAT is calculated then the following are the VAT calculation methods.

VAT Calculation Methods

Credit-invoice also called invoice-based method and subtraction or accounts-based are two main methods of calculating VAT.

Invoice-based Method

The invoice-based method is used commonly in most countries. In the Invoice-based method, taxes are imposed on sales transactions and businesses receive credit for value-added tax paid on the material used for the formation of products or services

Accounts-based Method

In the accounts-based method, value-added tax (VAT) is applied to the difference of the sum of all taxable purchases subtracted from all taxable sales. The account-based method of value-added, also known as a flat tax, is currently implementing in Japan.

During World War I, Value-added tax (VAT) was implemented by Germany and France as a general consumption tax.

Related Post: VAT Check

Related Post: VAT Exemption 

Related Post: How to Find VAT Number of Company

VAT Rate in the UK

The value-added tax (VAT) rate is 20% in the United Kingdom. The standard rate of VAT is increased by 2.5% (from 17.5%) on 4th January 2011.  The government has decided to exempt postage stamps as well as property and financial transactions.

There are three types of different value-added tax standard, reduced and zero rates are charged in the UK.

Rate% of VATWhat the rate applies to
Standard20%Most goods and services
Reduced rate5%Some goods and services
Zero rate0%Food & Children Clothes

Keep in Mind the Following Points before Charging VAT in UK

You must have complete knowledge of the VAT rates in the UK so you can reclaim it in your tax return. Always charge correct VAT and show value-added tax information in your invoice. Your VAT account must be reflecting your transactions. When submitting the VAT return, you must declare the amount.

If you follow the above instructions then you will be able to reclaim the amount of value-added tax on purchases.

Inclusive and Exclusive Value Added Tax

The following calculations are required to find out the exclusive or inclusive VAT on prices.

VAT Inclusive Prices

If the price is excluding the standard rate of VAT, which is 20%, then you have to multiply the amount by 1.2 for including VAT.

Similarly, if the price is excluding a 5% reduced rate of VAT, you have to multiply the price by 1.05 for including value-added tax.

VAT Inclusive Prices

If your price is including a 20% standard rate of VAT, you have to divide the price by 1.2 for excluding VAT. The same procedure will apply, If you want to exclude a 5% reduced rate of VAT from your price, you have to divide the price by 1.5.

Related Post: How to Calculate VAT 

Standard, Reduced, Zero & Exempt VAT Rates in UK on Goods and Services

Standard Rate (20%)Reduced Rate (5%)Zero Rate (0%)Exempt
Alcoholic drinksChildren's car seatsAircraftAntiques, works of art or similar, when sold to public institutions
BiscuitsElectricity, gas, heating oil & solid fuel (domestic/residential/charity non-business)Bicycle & motorcycle helmetsBurial or cremation (human)
Bottled waterEnergy saving materialsBiscuitsCommercial land & buildings (selling/leasing/letting)
Calendars & diariesMaternity padsBooks, maps & chartsCultural events operated by public bodies (museums, art exhibitions, zoos & performances)
Carbonated drinksMobility aids for the elderlyBread, rolls, baps & pitta breadEducation, vocational training
CDs, DVDs, video games, & tapesSanitary protection productsBrochures, leaflets & pamphletsFinancial services (money transactions, loans/credits, savings/deposits, shares/bonds)
Cereal barsSmoking cessation productsBuilding services for disabled peopleFuneral plan insurance
Chocolate-CakesGambling (betting, gaming, bingo, lottery)
Clothes & footwear-Canned & frozen foodHealth services (doctors, dentists, opticians, pharmacists & other health professionals)
Confectionery/sweets-CerealsInsurance
Delivery charges-Chilled/frozen ready meals, convenience foodsMedical treatment & care
Electrical goods-Clothes & footwear (for children under 14 only)Membership subscriptions
Electricity, gas, heating oil & solid fuel-Construction & sale of new domestic buildingsPostage stamps
Food & drinks-Cooking oilSports activities & physical education
Hot take-away food & drinks-Donated goods sold at charity shopsTV licence
Ice cream-Eggs-
Fruit juice & other cold drink-Equipment for disabled people (inc. blind/partially sighted)-
Nuts--Fish-
Postal services-Fruit & vegetables-
Potato crisps-Live animals for human consumption-
Prams & pushchairs-Meat & poultry-
Road fuel-Milk, butter, cheese-
Salt-Newspapers, magazines & journals-
Stationery-Nuts & pulses (raw for human consumption)-
Taxi fares-Prescription medicine-
Tolls for bridges, tunnels & roadsProtective boots & helmets (industrial)-
Water-Public transport fares (bus, train & tube)-
--Salt (culinary)-
--Sandwiches (cold)-
--Sewerage-
--Shipbuilding-
--Tea, coffee & cocoa-
--Transport in a vehicle, boat or aircraft (not fewer than ten passengers)-
--Water (household)-

Do you know when you can charge VAT in the UK?

Always remember there is no need to charge value-added tax on exempt or out of scope products like goods or services you purchase or utilize outside of the EU, statutory fees, selling of commodities as a hobby, and charitable donations. If you buy or sell insurance, postage stamps or services, health services (provided by doctors) then there is no need to charge VAT, but you still have to record your transactions in your business accounts.

There is no need for VAT registration if you are selling VAT free products or services.

Implementation of VAT Calculator

You are allowed to sell goods and services at reduced (5%) or zero rated (0%) to charitable institutions except for community amateur sports clubs. You must fulfill your responsibility to check the eligibility of these institutions for VAT exemption by examining the evidence, written declaration, or certificates.

VAT in Case of Sale or Purchase Return

In case of sale or purchase return, then a replacement invoice or a debit or credit note must be issued for the settlement of a balance of payment. There is no need to release a new value-added tax invoice if you are exchanging goods for goods.

Business Transactions or Services with EU

There is no need to charge VAT if you are providing services like hiring transport, valuing property, repairment of building, or agricultural work to an EU customer. Similarly, the EU customer is liable to pay VAT in his country if you are manufacturing, cleaning someone else’s goods, or you are acting as an agent or broker.

Click Here: Flat VAT Rate Scheme in UK

Related Post: Net of VAT 

VAT Calculator for EU

In the EU, VAT is the percentage of the sale price. To avoid double taxation, you need to deduct the tax that you already paid on production or distribution at the preceding stage. You will have a registered VAT number that you have to show on invoices at the time of charging to the customers. So a customer can understand how much value-added tax he can deduct or have to pay at the end product. Read More…

Vat Rates in the EU

You can calculate easily Value-added tax by VAT calculator at the standard rate is 15 % in the EU, and the reduced rate is 5 %. The standard rate is applied to all non-exempt goods and services. It should not be less than 15%. There is also an option available for EU countries to use one or two reduced rates. These rates vary between EU countries and between some specific products. Some EU countries have their VAT rates on certain products.

CountryStandard RateReduced Rate
Austria20%13% or 10%
Belgium21%12% or 6%
Bulgaria20%9%
Cyprus
Akrotiri and Dhekelia
19%9% or 5%
Czech Republic21%15% or 10%
Croatia25%13% or 5%
Denmark25%None
Estonia20%9%
Finland24%14% or 10%
France
Monaco
20%10%, 5.5% or 2.1%
Germany19%7%
Greece24%13% or 6%
Hungary27%18% or 5%
Ireland23%13.5%, 9%, 4.8% or 0%
Italy22%10%, 5%, or 4%
Latvia21%12% or 5%
Lithuania21%9% or 5%
Luxembourg17%14%, 8%, or 3%
Malta18%7%, 5% or 0%
Netherlands21%9% or 0%
Poland23%8%, 5%
Portugal
Azores
Madeira
23%
18%
22%
13% or 6%
9% or 4%
12% or 5%
Romania19%9% or 5%
Slovakia20%10%
Slovenia22%9.5%
Spain21%10% or 4%
Sweden25%12% or 6%

VAT Calculation in Ireland

Ireland has different types of VAT rates known as standard rate, reduced rate, second reduced rate, zero rates, and livestock rate.

Date effective fromStandard rate (%)Reduced rate (%)Second reduced rate (%)Livestock rate (%)Flat-rate compensation percentage for Farmers (%)
1 January 20202313.594.85.4

Standard VAT rate

23% standard rate applies to furniture, motor vehicles, tyres, solicitor services, and consultancy services.

Reduced Rate

Reduced VAT rate, which is 13.5%, applies to catering services, hairdresser’s services, take away, and cleaning and maintaining services. If you import antiques or artworks, then a 13.5% reduced rate will be applicable.

Second Reduced VAT rate

Newspapers and periodicals, eBooks, and facilities for sports have a 9% second reduced rate.

Zero Rate

If you are supplying goods to a VAT registered person living in other EU member countries, then the zero VAT rate will be applicable. Exports, certain books, animal feedings, and selling to a VAT registered person has zero VAT rate.

The VAT rate for livestock

All livestock, in general, are applicable for a 4.8% VAT rate in Ireland.

Germany VAT Calculator

The standard value-added tax rate is 19%, and the reduced rate is 7% in Germany. The reduced rate applies to food, accommodation, and certain goods and services. Zero-rated VAT is chargeable on postage stamps.

Value-Added Tax in France

The standard rate of VAT in France is 20% on goods and services. Reduced rates are 10% and 5.5% and also a specific reduce rate of 2.1% on some goods and newspapers. In Corsica Island, the VAT rate is 13% on sales.  France follows the VAT rules according to the EU.

VAT in Nordic Countries

Denmark VAT Calculator

Denmark has the highest value-added tax rate of 25% in the world. It has a flat VAT rate, which is not separated into other rates like in other countries. Services like public transportation, newspapers, rent, and travel agencies have some reduced VAT rates.

Norway VAT Calculator

Norway has a 25% standard VAT rate. 15% VAT on food-related products and 12% on transport services, hotel room services, and holiday home services. Cinema tickets carry the same VAT rate. Financial services, health, social, educational, books, and newspapers are out of the VAT criteria in Norway.

Value-Added Tax in Sweden

Sweden separates VAT into three categories, 25% in most goods and services and dance events, 12% on restaurants and hotels, 6% on print and private transport services, and stage shows. Education for children and adults in the public institution as are exempt from VAT. Insurance and cultural events have 0% VAT.

Iceland VAT Calculator

Iceland has 24% VAT on most goods and services. 11% VAT applies to books, newspapers, and electricity, water, food, and license fees for radio stations.

Finland VAT Calculation

Finland has a 24% standard VAT rate. 14% reduced VAT rate on food and animal feed, 10% on public transport, cinema, books, and entertainment events. Medical care, social welfare services, financial services, and educational services are exempt from VAT.

VAT Calculator for South Africa

You can calculate 15% VAT on the domestic supply of goods and services or import of products in South Africa by this online calculator. Custom authorities are responsible for collecting VAT on imported goods. Limited goods or services are available for zero VAT rates in South Africa.

If you are an individual, partnership, running international donor-funded projects or company you can register for value-added tax in South Africa.

GCC & UAE VAT Calculator

United Arab Emirates (UAE) started the implementation of VAT in 2018 as a new source of income for providing high-quality services and reduce the dependence on oil resources. The value-added tax rate is 5% in the UAE.

You are entitled to receive a refund from the government on the amount of tax you have paid to your suppliers.

Gulf Cooperation Countries (GCC) has a 5% value-added tax, including the Kingdom of Saudi Arabia and Oman.

VAT-in-UAE-infographic

 

Collection of VAT in UAE

If you purchase taxable goods and services or you are a tourist in UAE, then you have to pay a 5 % tax to the VAT registered business on these goods and services. The VAT registered business is obliged to collect value-added tax from you on behalf of the government.

Zero Rated VAT Calculation

There is a 0% VAT rate if you are exporting goods or services outside the GCC. International transportation or supplies of air, sea, or land means of transportation charged 0% VAT. Newly constructed housing properties, certain educational services, or certain health services are charged 0% value-added tax.

Local passenger transport, bare land, residential properties have an exemption from VAT.

VAT Calculator for Australia

The Australian Tax Office is collecting VAT on goods and services since 2000. Currently, the value-added tax rate is 10% in Australia. Government taxes, charges, and permits are exempted from VAT and zero-rated VAT on fresh food, education and health services, and some medical products. Childcare, water and sewerage, second-hand goods, and precious metals have 0% VAT. There is no reduced VAT rate in Australia.

VAT Calculation in Bangladesh

Bangladesh started VAT in 1991 to increase the source of government revenue. Now 56 % of the total tax revenue is based on VAT in Bangladesh.

The standard rate is 15 %, and many reduced rates are ranging from 1.5% to 10%. Export is exempted from value-added tax.

The government of Bangladesh charges 4% VAT on the supplier, 4.5 % on services related to information technology (ITES). Companies or firms are charged a 5.5% value-added tax on electricity.

Value-Added Tax in Canada

The Federal Government of Canada started a value-added tax known as general sales tax (GST) in 1991. The current rate of VAT in Canada is 7%.

If you are running a business of motor fuels, vending machine items, or alcohol stores, then you are exempted from VAT. Groceries stores, transportation, and medical devices also have an exemption from value-added tax.

Chine VAT Calculation

The State Administration of Taxation China implemented VAT in 1984. The standard rate of VAT is 13 %. 9% reduced rate implements on food, books, printed matters, and oil and 6% reduced VAT rate applies on services. Property, plant, and equipment lease has an exemption from this.

Indonesia VAT Calculation

Ministry of Finance of Indonesia is charging VAT at 10% on goods and services, but essential goods, medical, insurance, and health services are exempt from VAT. There are also no VAT charges on religion, educational, and government administration services.

VAT Calculator for Japan

Japan has one of the lowest VAT rates in the world, which is 5% on goods and services, including all sales and raw material. The supplier is responsible for collecting the VAT and submitting it to the government; otherwise, he will face high penalties.

Malaysia Value-Added Tax

If you have a business with the turnover exceeding MYR 500,000 annually, then you are obliged to register for VAT in Malaysia. The value-added tax is also known as sales and services tax (SST) is 6% on goods and services in Malaysia.

Books, jewelry, seafood, chemicals, bicycles, fertilizers, and live animals are exempted from VAT. The Malaysian government also has exempt exports from value-added tax.

If you talk about services exempted from VAT, then financial services, private education, health care, public transport providing services locally, agriculture land, and playgrounds are included.

Philippines VAT Calculator

The standard rate of VAT is 12% in the Philippines. A 6% reduced rate applies to petroleum products. Electricity and water services are also under the reduced rate. Senior Citizens having age more than 60 years, medicines, medical and dental services, transportation fees, and funeral services after death for senior citizens have a 0% VAT rate.

VAT Calculation in Kenya

The value-added tax, also known as consumer tax in Kenya, is applicable 16% on the supply of goods and services both domestically or importation. There are certain goods that fall under the 0% VAT. Only registered businesses are liable to charge VAT.

USA Value-Added Tax

Currently, the United States of America has no value-added tax. Instead of VAT, there is a direct tax applies only at the time of sale of goods and services.

Frequently Asked Questions (FAQs)

How do you calculate VAT?

For example, you are selling an item having a gross amount is 100$, including the VAT amount, which is 15%. To exclude the VAT value from the amount, divide the gross amount by 115. Now multiply the answer with 100 to get the amount excluding VAT.

100$ / 115= 0.869565

0.869564 X 100 = 86.9565$

How do you take 20% off a price?

To take 20% off a price,

  1. Multiple the price with 20%, for example, 100$ is the price. so 100$ X 20%= 20
  2. Now subtract 20 from 100, which is 100-20=80$
  3. Now you have 80$, which is 20% off the price e,g. 100$.

How much is the VAT in the UK?

The standard rate of VAT is 20% in England. If your price is inclusive of VAT, you have to divide the price with 120 and then multiply the amount with 100. That’s how you can exclude the value-added tax from the amount.

How is VAT calculated in UAE?

The VAT rate in the UAE is 5%. For example, if you want to calculate VAT in 10,000 AED. Divide 10,000 by 105. Now multiply the answer 95.2380 by 100. So AED 9,524 will be your amount excluding VAT. If you want to add VAT in AED 10,000. Multiply the amount by 105 then divide it by 100.

What is VAT example?

If a product cost 100$ and a value-added tax is 15%, the customer will pay 115$ to the supplier. 15$ on 100$ is the amount of VAT.