This is very simple UK VAT calculator. It can be used as well as reverse VAT calculator so it is easy to calculate VAT inclusive and exclusive prices
Select regular (20%) or reduced (5%) Value Added Tax rate and then enter any figure you know:
- VAT value – price including VAT and price excluding VAT will be calculated
- price including VAT – VAT value and price excluding VAT will be calculated
- price exclusive VAT – VAT value and price including VAT will be calculated
What is VAT rate in UK?
Current VAT rate in UK is 20% for most goods and services. There is reduced VAT rate (5%) for some goods and services, e.g. children’s car seats and home energy, and 0% VAT goods and services, e.g. most food and children’s clothes.
How to calculate UK VAT manually
Standard VAT rate (20%) is very easy to calculate. All you need to do is to divide your VAT exclusive amount by 5.
VAT exclusive value: £200
VAT amount: £200 / 5 = £40
To get VAT inclusive amount multiply VAT exclusive value by 1.2
VAT exclusive value: £50
VAT inclusive amount: £50 * 1.2 = £60
Divide VAT inclusive amount by 6 To get VAT part of VAT inclusive amount
VAT inclusive value: £48
VAT value: £48 / 6 = £8
Divide VAT inclusive price by 6 ant then multiply result by 5 to get VAT exclusive amount while knowing VAT inclusive value
VAT inclusive value: £48
VAT value: £48 / 6 = £8
VAT exclusive amount: £8 * 5 = £40
UK Value Added Tax history
| Year | VAT changes |
|---|---|
| 1940-1973 | During these years in UK was a consumption tax called Purchase Tax. It was applied not at the point of sale, but at the point of manufacture and distribution |
| 1973 | 10% value-added tax in UK was introduced |
| 1974 | VAT rate was reduced to 8%, but 25% tax for fuel was introduced |
| 1976 | VAT rate for petrol was reduced to 12.5% |
| 1979 | Value-added tax rate was increased to 15% |
| 1991 | VAT rate was increased to 17.5% |
| 2008 | Sales tax rate was decreased 15% (standard VAT) |
| 2010 | Sales tax rate was increased again to 17.5% (standard VAT) and 7% (reduced VAT) |
| 2011 | VAT was increased to current 20%, reduced rate set to 5% |