Working out the VAT

With our calculator, you can work out your VAT in just a few quick clicks.

If the price doesn't include VAT:

• Select the ‚ÄòAdd VAT' option
• Select the rate of VAT on the slider
• You'll obtain the gross price (inclusive of VAT) and the VAT element of the bill.

If the price includes VAT:

• Select the ‚ÄòExclude VAT' option
• Select the rate of VAT on the slider
• You'll obtain the pre-VAT price (exclusive of VAT) and the VAT element of the bill.

VAT basics: What you need to know

VAT, or Value Added Tax is a consumption tax that is applied to most goods and services. While the standard rate (20%) applies in most cases, there are items-such as children's car seats and sanitary products-that are charged at the reduced rate of 5%. Using the slider on our calculator, you'll be able to calculate the VAT and gross or net prices for different VAT rates. If you're unsure about the correct rate you should apply, refer to HMRC's resource on VAT rates.

Resources:

• How to deal with VAT if you are a small business
• Flat rate VAT Scheme: A beginner's guide for small business owners

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