UK VAT Calculator

This is very simple UK VAT calculator. It can be used as well as reverse VAT calculator so it is easy to calculate VAT inclusive and exclusive prices

Select VAT rate 19% or reduced 7% and enter any value you know - VAT value, price including VAT or price enclusive VAT - the other values will be calculated instantly.

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VAT rate in UK

Current (2016) VAT rate in UK is 20%, but for some daily goods and services like food, local public transport, newspapers, hotels reduced VAT rate (5%) is used and for some goods VAT rate is zero (0%).

VAT history

  • 1940-1973 - in UK was a consumption tax called Purchase Tax. It was applied not at the point of sale, but at the point of manufacture and distribution.
  • 1973 - 10% value-added tax in UK was introduced.
  • 1974 - VAT rate was reduced to 8%, but 25% tax for fuel was introduced.
  • 1976 - VAT rate for pertrol was reduced to 12.5%.
  • 1979 - value-added tax rate was increased to 15%.
  • 1991 - VAT rate was increased to 17.5%.
  • 2007 - sales tax rate was increased again to 19% VAT and 7% reduced VAT.
  • 2007 - VAT was increased to current 20%, reduced rate set to 5%.

How to calculate UK VAT manualy

To calculate UK VAT at 20% rate is very easy: just divide your VAT exclusive amount by 5.

£10 is VAT exlusive value

£10 / 5 = £2 VAT amount

To get VAT inclusive amount multiply VAT exclusive value by 1.2

£10 is VAT exlusive value

£10 * 1.2 = £12 VAT inclusive amount

To get VAT part of VAT inclusive amount you need divide VAT inclusive amount by 6

£24 is VAT inclusive value

£24 / 6 = £4 VAT value

To get VAT exclusive amount while knowing VAT inclusive value you need to divide VAT inclusive price by 6 ant then multiply result by 5

£24 is VAT inclusive value

£24 / 6 = £4

£4 * 5 = £20 VAT exclusive amount

But the best choice is to use above UK VAT calculator.