VAT Calculator

Calculate the VAT based on a certain price.

Tax rate

Net Amount (Excluding VAT)

VAT

Gross Amount (Including VAT)

Online VAT Calculator

Calculate your VAT amount, for free, in just a few clicks.

Our VAT calculator can help you add VAT to your sales invoices or show the breakdown of net and VAT if it isn’t shown on an invoice or receipt you have for an expense.

Or, calculate VAT automatically by using Bokio, a free accounting software. Bookkeeping, invoices, and VAT returns - Bokio does it all. 

Manage your VAT

What is VAT and how much do you pay?

Standard rate VAT currently stands at 20% in the UK.

5% VAT is the reduced rate which is applied to some goods or services. 0% VAT can also be applied to others, and some items can be outside the scope of VAT like financial transactions or postage stamps.

VAT is added to items sold, and works as a business transactions tax. Charging VAT is required as a member of the EU. However, to make it more tricky each member of the EU has a different VAT rates and rules. 

When invoicing to countries outside the UK, there are normally different rules that will need to be applied. For example, other members of the EU may be subject to reverse charge if your customer is also VAT registered. The HMRC website has a list of what you need to know about selling goods to EU businesses

Do you need to register for VAT?

Yes, if your business has a turnover of over £85,000 a year then it is compulsory to register. If your business has a turnover less than that, you can still voluntarily register for VAT. To do so, you can visit the HMRC website. Registering for VAT voluntarily has benefits for your business:

  • You may be able to receive VAT refunds of purchase if your input VAT is greater than your sales output VAT 
  • It makes your business appear more professional if you’re VAT registered, which may help when trying to gain customers

When to submit your VAT return and how to do it

Now you know how much VAT you have to pay, your next step is to submit your VAT report to HMRC.

When you do your bookkeeping with Bokio, you can submit your automated VAT return for free in just a few clicks. It’s as simple as recording your transactions, connecting your account to HMRC and submitting your VAT return. Watch the video below to find out more about how to submit your VAT return.

VAT Returns are normally submitted quarterly, but you can also opt to prepare these on a monthly basis or even on an annual basis. The deadline for your period will normally be 1 month and 7 days after the period for the VAT Return.

Making Tax Digital for VAT

If you’re registered for VAT then you will need to comply with the new Making Tax Digital regulations if you have a turnover of over £85,000. This means that businesses need to digitally record their VAT transactions and submit their VAT returns using an MTD compliant software. 

With Bokio, you can be MTD compliant for free. For more information, you can read our guide to Making Tax Digital here.

Did you know?

The UK has some interesting rules on what is and isn’t VAT exempt, especially when it comes to food. Here are a few examples:

  • Cakes are VAT exempt, but biscuits are VAT chargeable
  • Gingerbread men are VAT exempt with chocolate spot eyes, but become VAT payable if they have any additions, like buttons
  • Frozen foods are ‘zero-rated’, but you pay VAT on products like ice cream, sorbets or frozen yoghurt