The New VAT Calculator was established to calculate VAT (Value Added Tax) on invoices or receipts, while also providing guides on VAT rates, the Flat Rate Scheme and help-pages. Any business or individual can also access our handy VAT calculator where the VAT rate can be changed. It can then be easily added to a net amount or subtracted from the gross amount.
QuickBooks™ Official Website - 90% Off For 6 Months
To use the VAT calculator, enter any amount in numbers and then press 'Add VAT' to add VAT to the net amount. Or 'Remove VAT' to remove VAT from the gross amount. Both calculations will show you the gross, net and VAT amount. Handy for calculating VAT in a few seconds. You can also change the VAT rate should the rate change from 20%. Or for foreign VAT where the rate is different.
Please check this site regularly to get updates about VAT
The standard VAT rate in the UK is currently 20%, which was increased from 17.5% on 4 January 2011. There is also a reduced rate of 5% on some goods and services such as children’s car seats and home energy. Some things like postage stamps, financial and property transactions are exempt from VAT. Between December 2008 to December 2009 the rate was decreased to 15%, before being put back up to 17.5%.
Value Added Tax or VAT was first introduced in 1973 as a replacement for the old
‘Purchase Tax’. It is charged on goods and services sold in the UK and the Isle of Man. Since
its introduction, it has become a major source of revenue for the Government which continues to grow each
VAT is currently charged at three separate rates. The Standard rate of 20%, a reduced rate of 5% and the ‘zero-rate’ of 0%. In addition, a selection of goods and services are exempt from VAT. Some are even outside the VAT system entirely like all goods and services sold outside the European Union.
The UK must currently follow strict EU guidelines on the operation of it’s VAT system. The rate cannot fall below 15%, and any changes must be approved by the European Council. While the VAT rate has changed over time, it has recently ranged from 17.5% - 20%. The VAT registration threshold is currently £85,000.
While the debate between supporters and opponents of the VAT system continues, it is important that businesses know what their VAT obligations are. Any inaction could be seen as a criminal act with potentially severe penalties.