Adding VAT is easy. Taking it out of a price that already includes it is where people go wrong. Enter an amount, choose whether to add or remove VAT and pick the rate, and this calculator shows the price without VAT, the VAT and the price with VAT.
How to Use It
Choose "Add VAT" when you have a price without VAT, such as a quote from a trader. Choose "Take VAT out" when you have a price that already includes VAT, such as a shop receipt. The standard rate is 20%, with a reduced rate of 5% and a zero rate for some goods and services.
A Worked Example
A price of £120 that includes VAT at 20% is £100 plus £20 VAT. Notice that you cannot get £100 by taking 20% off £120, which would give £96. You have to divide £120 by 1.2.
For Business Owners
This tool only does the arithmetic. Whether you must charge VAT, and at which rate, depends on your business and what you sell, so check with HMRC or your accountant. If you run a local business and want to be found by people in Louth, have a look at the packages for businesses.
Questions about VAT Calculator
How do I take VAT out of a price?
Divide the price including VAT by 1.2 for the 20% rate. For example, £120 divided by 1.2 is £100, so the VAT was £20. Taking 20% off £120 would give the wrong answer.
What are the UK VAT rates?
The standard rate is 20%, the reduced rate is 5% and some things are zero rated at 0%. Which rate applies depends on what is being sold, so check with HMRC if you are unsure.
Does this tell me if I need to register for VAT?
No. The calculator only does the sums. Whether a business must register and charge VAT depends on its turnover and what it sells, which is a question for HMRC or an accountant.