What is VAT Calculator?
The VAT calculator is a free tool where you can include or exclude VAT percent rate from any amount. Just input the price or value and get the Net amount, VAT, and Gross amount instantly. Also, it gives you access to change the VAT percentage rate.
What is VAT?
VAT stands for "Value-Added Tax" and is applied to most of the goods and services charged by UK businesses. In short, it's one type of business transaction tax that all consumers need to pay when they buy any goods or products.
We have developed this tool because of recent VAT rate changes. There are so many sites available on the internet. But they don't allow users to change the VAT(%) rate. Therefore, we created this online tool for all individuals and business users to get access to change the VAT percent rates. In this VAT Calculator, you can enter any value in the VAT field and calculate the VAT easily.
How to Calculate Value-Added Tax?
There are two operations performed in VAT calculation.
- VAT Inclusion
- VAT Exclusion
Let's understand both with example.
1. VAT Inclusion
Here we will check for VAT inclusion or addition from the total price.
It's a very easy deal.
Simply multiply the initial amount by "1 + VAT (%)".
i.e. if VAT is 20% then multiply by "1.20".
Example: Add VAT in £95.00
Firstly, multiply £95.00 by 1.20.
£95 × 1.20 = £114.00
Now, subtract £95.00 from £114.00 to get how much VAT is added to the initial amount.
£114.00 - £95.00 = £19.00
So, you need to pay £19.00 (VAT amount) if you purchase a £95.00 price product. From the seller's perspective, you need to include £19.00 to sell a £95.00 price product.
2. VAT Exclusion
Now, we will check for the VAT exclusion.
It's a reverse process of VAT inclusion. In VAT addition, we are multiplying the initial amount by "1 + VAT (%)". But in exclusion, we need to divide the initial amount by "1 + VAT (%)".
Let's take an example.
Example: Remove VAT from £105.00
Firstly, divide £105.00 by 1.20 (or 1 + VAT (%)).
£105 / 1.20 = £87.50
Now, subtract £87.50 from £105.00 to check how much VAT is removed from the initial price.
£105.00 - £87.50 = £17.50
Therefore, £17.50 is the VAT amount that you need to pay if you purchase a £105.00 price product.
So, you can use this simple multiplication and division technique to calculate the VAT manually. But you don't need to do it all the time. Because it becomes more complicated when we are dealing with big numbers. So, using our VAT Calculator is better to make it easier, faster, and more accurate.
Also, in Australia, Goods and Services Tax(GST) is charged which is equivalent to a VAT. For the GST calculation, use the GST Calculator.
How to Use the VAT Calculator?
- Firstly, enter the initial amount in the input field. It can be VAT included or excluded.
- Then input the VAT percent rate. By default, it is set to the standard UK VAT rate of 20%. But it can be changed if you want.
- Now, press the "Add VAT" or "Remove VAT" button. As a result, the tool returns the Net, Gross, and VAT amount on your screen.
- The "Reset All" button will clear all the input fields and you can start the new VAT calculation.
Frequently Asked Questions
The current standard VAT rate in UK is 20%. Also, it keeps changing to balance the economy of the country. You can check the latest rate updates here: https://www.gov.uk/vat-rates.
In addition, the reduced VAT rate in UK is 5% and is applied to some services and goods (i.e. children's car seats and home energy). Even more, most of the food and children's clothes have a 0% VAT rate and it's called Zaro Rate.
All countries have different VAT rates. Also, some countries are not using VAT. One of the biggest examples is the USA. US government is not using VAT. Here is the list of VAT rates of some nations.
| Nation | VAT Rate(%) |
|---|---|
| India | 5.5% |
| Australia | 10% |
| Japan | 10% |
| Argentina | 21% |
| Bangladesh | 15% |
| Finland | 24% |
| Denmark | 25% |
| France | 20% |
| Greece | 24% |
| Italy | 22% |
| Ireland | 23% |
| Ghana | 15% |
| Iran | 9% |
| Iceland | 24% |
| New Zealand | 15% |
| Peru | 18% |
| Russia | 20% |
| Congo | 16% |
| South Africa | 15% |
| Saudi Arabia | 5% |
Note: It's recommended to check the latest VAT rate from a specific nation's official government website.
Yes, you can change the vat rate. All country users have access to change the VAT rate(%) as they need.