Online VAT Calculator

How to Use the VAT Calculator?

With this online VAT calculator, you can easily add or remove VAT on your invoices with just a few keystrokes. Follow the instructions below to go through the tool.

Firstly, enter the price that includes or excludes VAT.
The VAT(%) rate is set to 20% by default. That is the current standard rate for the United Kingdom. But you can change it if needed.
To add the VAT, press the 'Add VAT' button. Similarly, to remove the VAT, press the 'Remove VAT' button.
As a result, the tool displays the Net Amount, VAT price, and Gross Amount.
Lastly, you can use the 'Reset All' button for the new calculations.

How is VAT Calculated in the UK?

There are two operations that we can perform with VAT. Let's understand both in detail with an example.

1. Add VAT

To calculate the VAT price of the net amount, multiply the net amount by the VAT rate in percent, and divide by 100. Then add the VAT price to the net amount. As a result, it gives VAT inclusive price.

VAT = Net taxable amount × Applicable VAT rate(%) / 100

Example:

Suppose, in the UK, the computer service center charges £160 (without VAT) for a repair. VAT is charged at the standard rate of 20% on the sale. Find the total service charge with VAT.

Solution:

The net amount is £160.

VAT = £160 × 20/100 = £32

Therefore, the total price including VAT is £160 + £32 = £192.

2. Remove VAT

To remove the VAT from any amount, firstly, find the net amount by dividing the gross amount by (1 + VAT %) and then subtract it from the gross amount.

The VAT is 20% in the UK. So, divide the gross amount by '1.20' to get the VAT price.

Let's take an example to understand it.

Example:

Suppose, the VAT inclusive price is £200. Find the total net price excluding VAT.

Solution:

Here, the gross amount is £200.

Net Amount = Gross Amount / 1.20 = £200 / 1.20 = £166.67

Therefore, the price excluding VAT is £166.67.