Value Added Tax (VAT) is a tax on consumption levied in the United Kingdom by the national government. It was introduced in 1973 and is the third largest source of government revenue after income tax and National Insurance. It is administered and collected by HM Revenue and Customs.
The online VAT Calculator helps you calculate the VAT to add or subtract from a price, at different rates of VAT. Value Added Tax is charged on most goods and services purchased in the UK. Most products are charged at the standard rate of 20% but some are charged at a reduced rate of 5%. The low rate of 5% tax applies to some goods and services, eg children’s car seats and some energy-saving materials in the home, and others are exempt from any VAT charges such as most food and children's clothing. This VAT calculator will help you to see how much tax should be added to a price, or how much of the total price was made up by VAT.