# UK VAT Calculator

The standard VAT rate of united kingdom (UK) is 20% for most goods and services, it increased from 17.5% on 4 January 2011. The Reduced value added tax rate of United UK is 5% for some goods and services like children’s car seats and home energy. Some services like for most food and children’s clothes needs to pay zero rated value added tax.

## United Kingdom Value Added Tax

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The standard VAT rate of united kingdom (UK) is 20% for most goods and services, it increased from 17.5% on 4 January 2011. The Reduced value added tax rate of United UK is 5% for some goods and services like children’s car seats and home energy. Some services like for most food and children’s clothes needs to pay zero rated value added tax.

#### Formula:

Add Tax Tax Amount = ( Original Cost * VAT% ) / 100 Net Price = Original Cost + Tax Amount
Remove Tax Tax Amount = Original Cost - ( Original Cost * ( 100 / ( 100 + VAT% ) ) ) Net Price = Original Cost - Tax Amount

### Example

Find the VAT price and net price in United Kingdom (GST % is 20) for an amount of 25000 £

Solution :
GST % = 20
Amount = 25000

Step 1 :
GST Price = (25000 * 20 ) / 100
= 5000 £

Step 2 :
Net Price = 25000 + 5000
= 30000 £

Hence the VAT Price is 5000 £ and Net Price is 30000 £

#### Remove Tax

Solution :
GST % = 20
Amount = 25000

Step 1 :
GST Price = 25000 - (25000 * ( 100 / (100 + 20)))
= 25000 - (25000 * 0.83)
= 25000 - 20833.33
= 25000 - 20833.33
GST Price = 4166.67 £

Step 2 :
Net Price = 25000 - 4166.67
= 20833.33 £

Hence the VAT Price is 4166.67 £ and Net Price is 20833.33 £