Total amount including VAT

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VAT amount at 20%

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£

20% Standard VAT rate
Most goods and services charge VAT at 20%

5% Reduced VAT rate
Some goods and services charge VAT at the reduced rate of 5%, eg. children’s car seats, mobility scooters and home energy bills.

0% Zero VAT rate
Other goods are so-called “zero-rated goods and services”, these include most food and children’s clothes.

Want to find out more about what is VAT and how to calculate it?
Our VAT calculation guide explains what is the Value Added Tax (VAT) in great detail and the formulas if you want to calculate it yourself.

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About the online VAT Calculator

howmuchisthevat.co.uk is an online VAT calculator that helps you calculate the VAT charged on a net amount or the VAT included in a total amount.
We have designed, built and optimised this online tool to enable you to add or remove VAT on the go in any scenario.

To calculate how to add VAT or remove VAT from an amount simply enter the initial amount into the input box and our calculator will automatically calculate the VAT and the new total. You can choose if to add or subtract VAT from the initial amount.

What is VAT?

Value Added Tax or VAT is a general type of consumption tax assessed on the value added to the sales of goods and services in the United Kingdom. It applies more or less to all products whenever a value is added during the production stage and the final sale.

VAT is paid to the revenue authorities by the seller of the goods, like in the UK, VAT is collected on behalf of HM Revenue & Customs by companies. VAT is also paid by the buyer to the seller as part of the price of the goods, which makes it an indirect tax.

Find out more about VAT and how to do a calculation yourself.

10 interesting facts about VAT

1. France was the first country to introduce a Value Added Tax (VAT) back in 1954, and the tax did not make it’s appearance in the United Kingdom until 1 April 1973.

2. The initial VAT rate in the UK was set at 10%. This has gradually increased year after year, and has reached it’s peak in 2011 when it was set at 20% where it has not changed since.

3. One of the requirements of being a member state in the European Union is to charge VAT on goods. 15% is the minimum standard rate a country can set within the EU.

4. At 20% Hungary chargers the highest VAT rate in the world, followed by Iceland at 25.5%, and Denmark, Norway, Sweden and Croatia on 25%. Other countries do not charge VAT at all, although some like Saudi Arabia are introducing VAT in the coming months as a means to raise income.

5. The Institute for Fiscal Studies projects that the revenue from VAT for the tax year 2016/2017 will be £120.4 billion.

6. in the UK it is mandatory for businesses to register for VAT if their VAT taxable turnover exceeds £85000 over the course of a fiscal year.

7. Several products are classed as Zero-rated in the UK. These include children’s clothes, books, prescription medicine and most food for consumption as well as antiques, museum admissions and postal services.

8. In 2012 David Cameron’s government proposed to start charging VAT on takeaway food items such as pasties and sausage rolls. This was on of VAT’s biggest moments in the media dubbed as ‘Pastygate’. Needless to say that it was met by wide disapproval by the public and the proposal was pulled back after a huge online petition.

9. Jaffa Cakes successfully fought and won a battle to classify it’s product as cake, which is VAT exempt, as opposed to a biscuit which is charged inclusive of VAT.

10. Innocent lost it’s battle in trying to obtain VAT exempt status by classifying their product as ‘liquefied fruit salad’ as opposed to being simply a smoothie.

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