# VAT Calculator

Using our free VAT calculator, you can add or subtract VAT from any value amount entered. The standard rate of VAT in the UK is currently 20%, so the calculator is set at that as default. However, the VAT rate may vary depending on the product or service bought/sold, and the country.

## What are the different rates of VAT in the UK?

As of September 2021, there are 3 different rates of VAT that apply in the UK. Those being, 20%, 5% and 0% depending on the products or services bought and sold. The current standard rate of VAT for the UK is 20%. The last time this was changed was back in 2011. As of September 2021, there have been no plans in the UK to change this rate. For specific products and services such as home energy and children’s car seats, a 5% rate applies. Note: due to COVID-19, the 5% rate applies to the tourism and hospitality industries also. This will last until 30th September 2021. For a small set of products and services, there is a 0% rate. This applies to things such as kids clothing and physical books.

Note: VAT rates outside the UK can vary. For a list of VAT rates in other countries please click here.

## How Is VAT Calculated?

If you want to add VAT to a figure, you first need to divide the original amount by 100 and then multiply by 100 plus the VAT percentage.

An example of adding VAT of 20%:

• £200 divided by 100 is £2.
• We then take the £2, and multiple that by 100 and the 20% VAT for a total of 120.
• 2 x 120 is 240.

With the above adding 20% VAT to the original figure of £200, brings it to a grand total of £240.

## Removing VAT

If you want to remove the VAT from a figure, you need to take the original figure and divide that by 100 and the VAT percentage combined. (So for a UK VAT of 20%, it would be 120). You then multiply the result by 100.

An example of removing VAT of 20%:

• We divided that amount by 120 and then multiply the result by 100.
• £200 divided by 120 and then multiplied by 100 equals £166.62.

With the above, removing 20% VAT from the original figure of £200 leaves us with the figure of £166.62