An online UK VAT calculator to calculate VAT inclusive and exclusive amounts – add or remove VAT – based on UK VAT rates. It is a VAT refund calculator i.e. to remove VAT.
Please note: This UK VAT calculator is to be used with no liability or responsibility taken by its provider.
To calculate VAT using an offline calculator, please visit how to calculate VAT.
It is very important VAT is calculated accurately as it can lead to errors in VAT accounting causing a loss of money or unintentional extra money. Also incorrect VAT returns made to HMRC can result in penalties, fines or even prosecution.
This VAT calculator is designed to be 100% accurate, however, the user inputs the amounts to be calculated, so it is the user’s responsibility to ensure the amounts being used are correct.
The current standard rate of VAT in the UK is 20% for most goods and services. This VAT calculator selects the 20% rate by default, so please select a different rate if you need to.
Introduction to VAT
Value Added Tax (VAT) is a tax that’s charged on most goods and services in the UK, but only charged by VAT-registered businesses. It’s also charged on goods and some services that are imported from countries outside the European Union (EU), into the UK.
VAT is charged when a VAT-registered business sells goods or services to UK and EU-based businesses and individuals. VAT is not charged on sales to businesses and individuals based outside the EU. This is why non-EU visitors to the UK can claim VAT refunds on their UK purchases when leaving the country. Some department stores such as Selfridges in London have dedicated desks to help foreign customers with VAT refunds.
When VAT-registered businesses buy goods and services they generally pay or reclaim VAT based on the difference between the VAT they’ve paid on purchases (input tax) and the VAT they’ve received on sales (output tax). VAT payments are made to HMRC and HMRC pay businesses VAT reclaims. This is administered by VAT returns that VAT-registered businesses must submit on a periodic basis.
General members of the public cannot reclaim VAT on purchases.
This VAT calculator is useful for calculating VAT amounts for adding VAT to a VAT exclusive amount and removing VAT away from a VAT inclusive amount). In both cases, the VAT calculator shows the VAT amounts.