The standard rate of VAT in the United Kingdom is 20%. Use the calculator below to find values with and without VAT. Just enter the Gross or Nett value and it will calculate the rest for you.
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VAT stands for Value Added Tax and in some countries is called GST (Goods and Services Tax). It is a tax that is added when a product or service is sold. The VAT rate varies between countries, from 5% in Canada to 27% in Hungary, but most are around 20%.
VAT is an indirect tax paid by the final consumer, while businesses collect the tax on behalf of the government. Each business in the supply chain charges VAT on its sales and can usually reclaim the VAT paid on its purchases, ensuring that tax is only paid on the value added at each stage.
VAT-registered businesses must add VAT to their prices and must make the VAT rate and the amount of VAT charged clear on their invoices and receipts. In many countries businesses are legally required to include specific VAT information on invoices, such as their VAT registration number, the taxable value of goods or services, and the total VAT amount charged.
Different products and services may be subject to different VAT rates. Depending on the country, some goods may qualify for reduced rates or a zero rate. Food, books, children's clothing and medical services often have a lower rate. Because VAT treatment varies between countries, businesses should always check the rules that apply in their region.
If you are a VAT-registered business, you need to make regular VAT returns. That usually means calculating the total VAT due on sales, deducting the total VAT you have paid on purchases, and paying the difference to your VAT authority. If the VAT paid on purchases is greater than the VAT charged on sales, you may be entitled to a VAT refund.
For more information, also see What is VAT?.