VAT Calculator


VAT Rate In The UK

Use our simple UK VAT Calculator to calculate the VAT Rate In The UK. Different VAT Rates apply to goods and services in the UK. Some of these products are under Standard VAT Rates, the second is reduced VAT Rates, and others are zero-rated products.

The current standard VAT rate in the UK is 20%, which applies to most products and services. The Reduced VAT Rate in the UK is 5% which includes products like fuel, heating, and car seats for children. The last one has Zero Rated VAT Tax. Zero-rated products include most foods, books, and clothes for children.

In this picture a flag of united kingdom is shown to my audience so that they can relate with this artical.

VAT rates and their products

Standard VAT Rate (20%)

  • Books and magazines.
  • Items of clothing and footwear.
  • Mobile phones and accessories.
  • Furniture and home furnishings.
  • Restaurant meals and takeaway food.

Reduced VAT Rate (5%)

  • Children’s car seats.
  • Energy-saving materials.
  • Energy-efficient light bulbs.
  • Prescription glasses and lenses.
  • Gas and electricity for household use.

Zero-Rated VAT Products

  • Residential housing.
  • Children’s clothing and footwear.
  • Books, newspapers, magazines.
  • Public transport eg buses, trains.
  • Basic food items (e.g. bread, milk, vegetables, and eggs).
In this picture Standard rate reduced rate and zero rate of VAT Is shown with the help of symbols.

How to calculate Value Added Tax In United Kingdom by our VAT Calculator?

Calculating VAT is difficult, but using our Online VAT Calculator, you can calculate your tax within three clicks. Just follow these steps:

How to add VAT?

  • Enter your exclusive amount.
  • Adjust VAT Rate of UK (20%/5%).
  • Click the add button.

How to remove VAT?

  • Enter the inclusive amount.
  • Adjust VAT Rate of UK (20%/5%).
  • Click the remove button.

Method to Calculate VAT in UK Manually?

How to add VAT manually?

Let’s say the product’s base price is 100$ and the VAT Rate is 20%. (According to UK VAT Rate)

  • Base Price = 100$
  • VAT Amount = Base Price × VAT Rate = 100$ × 0.20 = 20$
  • Total Price Including VAT = Base Price + VAT Amount = 100$ + 20$ = 120

So, the total price of the item, including VAT, would be 120$.

How to remove VAT manually?

Let’s say the total price of an item, including VAT, is £120 and the VAT rate is 20%.

  • Total Price Including VAT = 120$
  • VAT Amount = Total Price × VAT Rate = 120$ × 0.20 = 24$
  • Base Price Excluding VAT = Total Price – VAT Amount = 120$ – 24$ = 96$

So, in this example, if the total price including VAT is 120$ and the VAT rate is 20%, then the base price excluding VAT would be 9$.

Value Added Tax Over The Year In the United Kingdom (History Of VAT)

YearVAT Rate
1973In 1973, For the first time, Value Added Tax was introduced in the UK. Although there was a purchase tax instead of a VAT Tax. The standard VAT rate in the UK at its start was 10%, which was applied to most goods and services.
1974The VAT rate was reduced to 8%, but a 25% tax for fuel was introduced.
1976The VAT rate for petrol was reduced to 12.5%.
1979The value-added tax rate was increased to 15%.
1991The VAT rate was increased to 17.5%.
2008The sales tax rate was decreased by 15% (standard VAT).
2010The sales tax rate was increased again to 17.5% (standard VAT) and 7% (reduced VAT).
2011VAT was increased to the current 20%, and the reduced rate was set to 5%.