VAT Calculator UK has been created to help users calculate the amount of VAT. This is very useful for business and individuals in the UK who need to find out the VAT contained within a total amount or the VAT charged on a net amount. You can use this simple VAT calculator where the VAT rate can be changed and VAT can be added or subtracted from a gross amount easily.
Introduced on 1 April 1973, as a replacement for Purchase Tax and Selective Employment Tax, VAT or Value Added Tax is a tax on transactions used by business for sales of goods and services in the UK and the Isle of Man.
VAT is charged on goods and services in the UK which are provided by a VAT-registered business. VAT is also charged on services and goods imported from countries outside the European Union and imported into the UK via other countries within the EU.
The VAT rate for the UK was 17.5% for some time. This has been revised on the 4th of January 2011 and the current VAT rate for the UK is 20%. Also, the standard rate of VAT was reduced to 15 % on the 1st of December 2008 which was then put back to 17.5% on the 20th of January 2010.
To get the correct standard rate of VAT using this calculator, make sure to check the dates in the invoice/receipt. If the invoice/receipt is dated prior to 4 January 2011, choose 17.5% Standard Rate. If it is dated 4 January 2011 or later, choose 20% Standard Rate.