VAT Calculator

ANNA’s Free UK VAT Calculator

Our free online UK VAT calculator lets you add or remove Valued Added Tax from any amount

I want to

Add VAT

Remove VAT

to the value of

at a VAT rate of

20%

See more information about VAT rates

VAT added

£0

Find out more about how to remove or add VAT

Gross total

£0

How to calculate VAT

Adding VAT

The calculation for adding VAT is (amount) × (100+VAT%)

So, working out the VAT on £100 at a 20% VAT rate would be £100 × 0.2

This gives you VAT amount of £20 and a gross total of £120

Removing VAT

To remove VAT you calculate (amount) ÷ (100+VAT%)

So, the VAT from a gross total of £100 at a 20% Standard VAT rate would be 100 ÷ 1.2

This gives you a net total of £83.33, with the remaining £16.67 as VAT

What are the current UK VAT rates?

20%

The current standard rate of VAT in the UK is 20%. Most VAT on products and services in the UK are set at this rate.

On some products and services such as home energy, mobility seats for elderly, nicotine patches and children’s car seats, a 5% rate applies

For some products and services, there is a 0% rate. This applies to things like kids clothing and books, equipment for disabled people

ANNA automatically calculates your VAT so you don’t have to

ANNA calculates VAT on your transactions, receipts and invoices, sends reminders, and sets money aside for your tax bill

Value Added Tax facts

VAT on Popcorn

Puffed up popcorn is considered a luxury and taxed at 20% VAT, while microwavable popcorn is VAT-free.

VAT on Gingerbread

A gingerbread with chocolate belt will be charged 20% VAT, while the one with chocolate eyes only 0%.

VAT on Biscuits

Biscuits covered with chocolate are taxed at standard 20% rate, however, if it is filled with chocolate, it is VAT-free

VAT on Pets

Pets are taxes at a standard VAT rate, unless it is a rabbit, which is considered a food and therefore is VAT-free

Value Added Tax

was first introduced in France in 1954 and made its first appearance in the UK on 1 April 1973

UK VAT rate

was initially set at 10% and has gradually increased over the years, rising to 20% in 2011, and it has remained at that level ever since

Charging VAT

is one of the requirements of being an EU member, and no country was allowed to charge a standard rate below 15% until December 2015

Hungary

has the highest VAT rate in the world at 27%, followed closely by Iceland at 25.5%. Countries that don’t charge VAT at all include the Bahamas, Hong Kong, Saudi Arabia and Qatar

60 to 160

In the tax year 2022/23 UK VAT receipts were nearly £160 billion. In 2000/01 VAT receipts were just £60 billion

Businesses in the UK

don’t need to register for VAT if their VAT-taxable turnover is under £90,000 per year

Zero rate VAT

products in the UK include: children’s clothes, most food, books and prescription medicine. Other VAT-free items include museum admissions, antiques and postal services

Pastygate

In 2012, The government’s proposal to start charging VAT on takeaways brought widespread disapproval, the government backed down and the VAT status of pasties remained unchanged

VAT victories

Jaffa Cakes and Tunnock’s Snowballs are just two of the brands that have fought and won VAT victories proving that their products are cakes (VAT exempt) and not biscuits (VAT chargeable)

VAT fails

Innocent insisted their smoothies were actually ‘liquefied fruit salad’ and Lucozade claimed their energy drinks were ‘functional food’. Both lost their battles for VAT exemption

News from the blog

Read the latest updates

Frequently asked questions

When can you charge customers VAT?

You can charge your customers VAT as soon as you become VAT registered. It is mandatory to register for VAT when your turnover reaches £90,000 a year, otherwise it is totally up to you.

Find out more in our blogpost – When and how should I register for VAT

Is VAT Calculated on net or gross?

Is it possible to calculate the cost of a product knowing only the VAT amount?

What is the flat rate scheme?

How to Calculate VAT in Excel

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