VAT Calculator
How to Use the VAT Calculator
- Enter your amount
- Enter the VAT rate (UK standard rate is 20%)
- Click Add VAT
- Enter your amount
- Enter the VAT rate (UK standard rate is 20%)
- Click Remove VAT
The information & VAT Calculator displayed on VATCalculatorUK.co.uk has been verified & approved by a Chartered Accountant.
Use our free VAT Calculator above to calculate your figure inclusive or exclusive of VAT.
If you require assistance using the VAT Calculator or have questions surrounding VAT, please scroll down to read our helpful guides.
The UK standard VAT rate is 20% which was increased from 17.5% under the Conservative & Liberal Democrats coalition government on the 4th of January 2011.
The UK’s VAT rates include: (Source)
- Standard UK VAT rate of 20% for most goods and services
- Reduced UK VAT rate of 5% for some goods and services, eg children’s car seats and home energy
- Zero UK VAT rate of 0% for zero-rated goods and services, eg most food and children’s clothes
For VAT rates in other European countries, check out rate table.
Quick Navigation - VAT Topics
Working Out VAT
You can work out VAT in two ways by removing / reversing VAT or adding / including VAT.
| Adding / Including VAT Formula |
|---|
| 1. Multiply the price/figure by 1. + VAT Percentage |
| 2. For example, the UK VAT rate is 20%, which means you would do price/figure X 1.2 |
| 3. For example, £100 is the price X 1.2 = £120 which is now the price/figure including VAT |
| Reversing / Removing VAT Formula |
|---|
| 1. Divide the price/figure by 1. + VAT Percentage |
| 2. For example, the UK VAT rate is 20%, which means you would do price/figure / 1.2 |
| 3. For example, £120 is the figure / 1.2 = £100 which is now the price/figure excluding VAT |
Additional VAT Calculation Examples
Basic VAT Addition Example
- Take the product price (£9.60) and divide by 1.2 (1. + VAT Percentage) = £8
- After the above calculation, the shopkeeper would then take the original product price (£9.60) and subtract the divided sum (£8) = £1.60
- Take the product price (£9.60) and divide by 1.2 (1. + VAT Percentage) = £8
- For this product they would owe £1.60 in VAT
VAT Inclusive
- Divide the figure by 1.2 (1.+ UK VAT Percentage)
- For example, £600 is the figure / 1.2 = £500 which is now the figure excluding VAT
- The VAT would be the original gross price (£600) – price excluding VAT (£500) = £100 VAT
Calculate Gross VAT Figure
- Multiply the net figure by 1. + VAT Percentage
- The UK VAT rate is 20%, so you would do net figure X 1.2
- An example would be £1000 net figure X 1.2 = £1200 gross figure (including VAT)
Basic VAT Subtraction Example
If the shopkeeper has already priced the product (VAT inclusive) and wanted to reverse calculate VAT, to find out how much they owed to HMRC they’d use the VAT subtraction example below.
To subtract VAT from the product price they would:
- Take the product price (£9.60) and divide by 1.2 (1. + VAT Percentage) = £8
- After the above calculation, the shopkeeper would then take the original product price (£9.60) and subtract the divided sum (£8) = £1.60
- Take the product price (£9.60) and divide by 1.2 (1. + VAT Percentage) = £8
- For this product they would owe £1.60 in VAT
VAT Exclusive
- Divide the figure by 1.2 (1.+ UK VAT Percentage)
- For example, £600 is the figure / 1.2 = £500 which is now the figure excluding VAT
- The VAT would be the original gross price (£600) – price excluding VAT (£500) = £100 VAT
Calculate VAT Backwards
To calculate VAT backwards simply:
- Take the sum you want to work backwards from divide it by 1.2 (1.+ VAT Percentage), then subtract the divided number from the original number, that then equals the VAT.
- For example £60 / 1.2 (UK VAT rate) = £50 (price without VAT)
- Original figure (£60) – £50 (price without VAT) = £10 VAT
UK VAT Rates On Products & Services
VAT on Food:
The majority of food within the UK is zero-rated meaning you don’t pay VAT. (Source)
Zero-rated food & drinks include:
| UK VAT Exempt Food Products | ||
|---|---|---|
| Biscuits (not chocolate covered) | Cereals Fish (including live fish) | Eggs, meat & poultry |
| Bread, rolls, baps & pitta bread | Chilled/frozen ready meals (convenience foods) | Fruit & vegetables |
| Cakes (including chocolate teacake, Jaffa Cakes) | Cooking oil | Milk, butter, cheese |
| Canned & frozen food (not ice cream) | Tea, coffee & cocoa | Nuts & pulses (raw for human consumption) |
| Sandwiches (cold) | Salt (culinary) | Water (household) |
However certain food & drinks are taxed at the standard rate of VAT which is 20%
These food & drinks include:
| UK Non VAT Exempt Food Products | |||
|---|---|---|---|
| Alcoholic drinks | Chocolate | Ice cream | |
| Biscuits (chocolate covered only) | Confectionery/sweets | Fruit juice & other cold drinks (not milk) | |
|
Bottled water (including mineral water)
& Carbonated drinks |
Food & drinks supplied for consumption on the premises (at restaurants, cafes etc.) |
Nuts (shelled, roasted & salted) | |
| Cereal bars |
Hot take-away food & drinks (including burgers, hot dogs, toasted sandwiches etc.) |
Potato crisps | |
UK VAT Zero-Rated Items
All of the products shown below are UK VAT zero-rated.
This means you won’t pay VAT on any of these purchases and if you are being charged VAT for any of these items you may want to query this with your supplier/retailer.
- Aircraft (sale/charter)
- Bicycle & motorcycle helmets
- Biscuits (not chocolate covered)
- Books, maps & charts (including E-books)
- Bread, rolls, baps & pitta bread
- Brochures, leaflets & pamphlets
- Building services for disabled people
- Cakes (including Chocolate teacake, Jaffa Cakes)
- Canned & frozen food (not ice cream)
- Cereals
- Chilled/frozen ready meals, convenience foods
- Construction & sale of new domestic buildings
- Cooking oil
- Donated goods sold at charity shops
- Eggs
- Equipment for disabled people (inc. blind/partially sighted)
- Fish (inc. live fish)
- Fruit & vegetables
- Live animals for human consumption
- Meat & poultry
- Milk, butter, cheese
- Newspapers, magazines & journals
- Nuts & pulses (raw for human consumption)
- Prescription medicine
- Protective boots & helmets (industrial)
- Public transport fares (bus, train & tube)
- Salt (culinary)
- Sandwiches (cold)
- Sewerage (domestic & industrial)
- Shipbuilding (15 tonnes or over)
- Tea, coffee & cocoa
- Transport in a vehicle, boat or aircraft (not fewer than ten passengers)
- Water (household)
| VAT Exempt Items & Services | |||
|---|---|---|---|
|
Antiques, works of art or similar (when sold to public institutions) |
Financial services (money transactions, loans/credits, savings/deposits, shares/bonds) |
Medical treatment & care | |
| Burial or cremation (human) | Funeral plan insurance | Membership subscriptions | |
|
Commercial land & buildings (selling/leasing/letting) |
Gambling (betting, gaming, bingo, lottery) | Postage stamps | |
|
Cultural events operated by public bodies (museums, art exhibitions, zoos & performances) |
Health Services (doctors, dentists, opticians, pharmacists & other health professionals) |
Sports activities & physical education | |
| Education, vocational training | Insurance | TV licence | |
Frequently Asked VAT Questions & Answers
There is no VAT on train tickets.
This is because they are within the zero-rated VAT rates. This includes public transport such as buses, trains and tubes.
You do however have to pay Insurance Premium Tax (IPT). (Source)
This reduced VAT rate of 5% applies to electricity for domestic, residential and non-business use by a charity.
VAT on gas is charged at the reduced rate of 5%.
This reduced VAT rate of 5% applies to gas for domestic, residential and non-business use by a charity.
VAT on heating oil is charged at the reduced rate of 5%.
This reduced VAT rate of 5% applies to heating oil for domestic, residential and non-business use by a charity.
Value Added Tax or VAT is paid by all residents of countries within the European Union and the United Kingdom residents will continue to pay VAT once they have left the EU.
Businesses and consumers are required to pay VAT; it is paid on purchases of goods or services.
For example, if a manufacturer was to create a new product, they would pay VAT on any of the materials purchased that were required to manufacture the new product.
The manufacturer will then sell this new product to consumers. The consumers will then pay VAT on top of the price set (without VAT).
This reduced VAT rate of 5% applies to solid fuel for domestic, residential and non-business use by a charity.
VAT on wine is subject to standard rate VAT which is 20%.
In addition to VAT on wine, you will pay wine duty which varies depending on the strength of the wine.
Schools do not pay VAT. Education, vocational training and other connected services provided by an eligible body like a school, college or university are exempt from VAT.
They can however still reclaim VAT on goods & services relevant to their educational activities.
You do not pay VAT on MOT’s. (Source)
Businesses pay VAT in multiple circumstances.
Businesses that turnover more than £85,000 within any 12-month period are legally required to register for VAT and pay any difference to HMRC.
Once a business is VAT registered, it must charge VAT on goods and services that it sells, and it must pay VAT on goods and services that it buys. The business will then file VAT returns to HMRC.
The frequency of the returns will depend upon the VAT scheme that the business is using. Once VAT registered, the business can claim back VAT on purchases they make for the business to operate.
Sole traders that turnover more than £85,000 (within any 12-month period) must pay VAT.
When you’re VAT registered as a sole trader you must charge and pay VAT on all goods and services you purchase and sell.