Reverse VAT Calculator – How to calculate VAT Backwards or Forwards
If you are running an online shop, you will often have to enter your prices excluding VAT in the admin area of your website, but you will also want a ‘clean’ or ’rounded price’ for your customers who view the front of the website, which includes VAT.
The online vat calculator allows you to add a clean rounded figure and then calculate the VAT portion for you.
Adding 20% VAT is straightforward
Adding 20% VAT to a price is easy, (simply multiply by 1.2)
But calculating VAT ‘backwards’ or calculating VAT in ‘reverse’ can sometimes be a little more tricky – as you can’t simply take 20% off the VAT included price to calculate the VAT portion.
To help you out we have developed this handy little VAT Calculator, that calculates VAT ‘backwards’ or ‘forwards’ or in ‘reverse’.
How to Use the Online Vat Calculator
Simply enter the amount you want to work with, select whether that amount already includes VAT or not and hey presto! – you have VAT Calculated forwards or backwards.
The Online VAT Calculator can be used to:-
- Remove VAT from a figure
- Work out the VAT on a price or figure
- Calculate the VAT inclusive portion of a price
- Calculate VAT from a Gross figure
- Calculate VAT Backwards (e.g. adding VAT to £1.00 is £1.20, add 20%. Removing VAT is not £0.80 – try the VAT Calculator to see)
- Calculate the VAT content of a number, which is inclusive of VAT
- Calculate VAT at 20%
- Used to calculate VAT Backwards
- Calculate VAT Amount in a number
- Calculate the VAT Element
- Calculate VAT from Total Price of a Product or Service which includes VAT
- Take 20% of a Price
- How to add or subtract VAT from a number
- How to calculate sales tax backwards
What is the current VAT Rate in the UK?
There are 3 basic rates of VAT in the United Kingdom which is applied to goods and services in 2019.
The Standard VAT rate is 20%
This is the VAT rate most commonly used in the UK and covers most goods and services.
The VAT Calculator above is used for calculating this rate both adding VAT to a number and subtracting VAT from a number. The 20% Value Added Tax Rate has been in place since 4th January 2011.
The rate was previously 17.5%.
The Reduced VAT Rate is 5%
Some goods and services use the Reduced VAT Rate (e.g. Home Energy)
The Zero Rate VAT is 0%
Food and children’s clothes are examples of goods and services that are 0% VAT Rated.
Helpful VAT Links
Making Tax Digital for VAT 2019
On 13 July 2017, the Financial Secretary to the Treasury and Paymaster General announced that Making Tax Digital for VAT will come into effect from April 2019.
From that date, businesses with a turnover above the VAT threshold (which is currently £85,000) will have to keep their records digitally (for VAT purposes only), and provide their VAT return information to HM Revenue and Customs (HMRC) through Making Tax Digital (MTD) functional compatible software.