To use the VAT calculator, enter any amount in numbers and then press 'Add VAT' to add VAT to the net amount. Or 'Remove VAT' to remove VAT from the gross amount. Both calculations will show you the gross, net and VAT amount. Handy for calculating VAT in a few seconds. You can also change the VAT rate should the rate change from 20%. Or for foreign VAT where the rate is different.
Simply enter the gross sum, choose vat calculation operation (include or exclude), tax percentage and press «Calculate» or Enter button to calculate VAT amount. By default, the online VAT calculator rate is set for UK VAT calculation.
VAT calculation formula for VAT exclusion is the following: to calculate VAT having the gross amount you should divide the gross amount by 1 + VAT percentage (i.e. if it is 15%, then you should divide by 1.15), then subtract the gross amount, multiply by -1 and round to the closest value (including eurocents). The last two operations are not mandatory since you see the VAT value even before you do them.
Simply multiply the net amount by 1 + VAT percentage (i.e. multiply by 1.15 if VAT is 15%) and you'll get the gross amount. Or multiply by VAT percentage to get the VAT value.
The New VAT Calculator was established to calculate VAT (Value Added Tax) on invoices or receipts, while also providing guides on VAT rates, the Flat Rate Scheme and help-pages. Any business or individual can also access our handy VAT calculator where the VAT rate can be changed. It can then be easily added to a net amount or subtracted from the gross amount.
To use the VAT calculator, enter any amount in numbers and then press 'Add VAT' to add VAT to the net amount. Or 'Remove VAT' to remove VAT from the gross amount. Both calculations will show you the gross, net and VAT amount. Handy for calculating VAT in a few seconds. You can also change the VAT rate should the rate change from 20%. Or for foreign VAT where the rate is different.
The standard VAT rate in the UK is currently 20%, which was increased from 17.5% on 4 January 2011. There is also a reduced rate of 5% on some goods and services such as children's car seats and home energy. Some things like postage stamps, financial and property transactions are exempt from VAT. Between December 2008 to December 2009 the rate was decreased to 15%, before being put back up to 17.5%.
Value Added Tax or VAT was first introduced in 1973 as a replacement for the old 'Purchase Tax'. It is charged on goods and services sold in the UK and the Isle of Man. Since its introduction, it has become a major source of revenue for the Government which continues to grow each year.
VAT is currently charged at three separate rates:
In addition, a selection of goods and services are exempt from VAT. Some are even outside the VAT system entirely like all goods and services sold outside the European Union.
The UK must currently follow strict EU guidelines on the operation of it's VAT system. The rate cannot fall below 15%, and any changes must be approved by the European Council. While the VAT rate has changed over time, it has recently ranged from 17.5% - 20%. The VAT registration threshold is currently £85,000.
Value Added Tax (VAT) is levied on the sale of goods or services by UK businesses.
VAT is collected on behalf of HM Revenue & Customs by companies. A company pays VAT to HMRC by calculation the amount of VAT charged to customers minus any VAT they have paid on their own purchases.
A business must register for VAT once the sales exceed £67000 (as of 1st April 2008) in a year, or else you can make a voluntary registration even before hitting this threshold.
Applies to most items.
Applies to many items including:
Applies to items including:
Include:
The Flat Rate Scheme for VAT is available to businesses who have an annual VAT taxable turnover of less than £150,000. The flat rate scheme can reduce the time needed to complete accounting tasks and calculating tax.
Using standard VAT accounting, the VAT you pay to HMRC (or claim back) is the difference between the VAT you charge and the VAT you pay.
Using the Flat Rate Scheme you pay VAT as a fixed percentage of your VAT inclusive turnover. The actual percentage you use depends on your type of business.
The Flat Rate Scheme might not be right for your business if:
Note: The flat rate scheme is not advisable for all businesses. It is best to consult the VAT section of the HMRC website or speak to an accountant.
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Please check this site regularly to get updates about VAT regulations and rates.