Calculate VAT (Value Added Tax) for UK and EU countries. Add or remove VAT from prices, compare rates, and understand VAT obligations for businesses.
VAT Rates by Country (2024)
| Country | Standard Rate | Reduced Rate | Zero Rate Items |
|---|---|---|---|
| United Kingdom | 20% | 5% | Food, books, children's clothes |
| Ireland | 23% | 13.5%, 9% | Food, books, medicines |
| France | 20% | 10%, 5.5% | Exports, some services |
| Germany | 19% | 7% | Exports, intra-EU supplies |
| Spain | 21% | 10%, 4% | Exports, medical equipment |
| Netherlands | 21% | 9% | Food, books, medicines |
UK VAT Registration
- Registration threshold: £85,000 annual turnover (2024)
- Voluntary registration: Available below threshold
- Deregistration threshold: £83,000 annual turnover
- VAT returns: Quarterly submissions required
VAT Exemptions vs Zero-Rated
Zero-rated: 0% VAT charged, can reclaim input VAT
Exempt: No VAT charged, cannot reclaim input VAT
Common Zero-Rated Items (UK):
- Most food and drink
- Books and newspapers
- Children's clothes and shoes
- Prescription medicines
- Exports outside the EU
Common Exempt Items (UK):
- Insurance services
- Postal services
- Financial services
- Education and training
- Healthcare services
Frequently Asked Questions
How do I calculate VAT and what are the current rates?
To add VAT: multiply the net price by the VAT rate (e.g., £100 × 1.20 = £120 with 20% UK VAT). To remove VAT: divide gross price by (1 + VAT rate) (e.g., £120 ÷ 1.20 = £100 net). Current rates include UK (20% standard, 5% reduced), Ireland (23%), Germany (19%), France (20%). Most countries have standard rates (15-27%) and reduced rates (5-15%) for essentials like food and books. Zero-rated items charge 0% but allow VAT reclaim, while exempt items charge nothing but don't allow reclaim.
When do I need to register for VAT and what are my obligations?
In the UK, you must register for VAT if your taxable turnover exceeds £85,000 in 12 months (2024 threshold). You can voluntarily register below this threshold. Once registered, you charge VAT on taxable supplies, can reclaim VAT on business purchases, and must submit quarterly VAT returns. You charge output VAT to customers and pay input VAT on purchases. The difference is paid to HMRC or claimed as a refund. Keep detailed VAT records and issue proper VAT invoices.
What's the difference between zero-rated and exempt for VAT purposes?
Zero-rated supplies charge 0% VAT but you can still reclaim input VAT on related purchases. Examples include most food, books, children's clothes, and exports. Exempt supplies charge no VAT and you cannot reclaim input VAT on related costs. Examples include insurance, finance, education, and healthcare. This distinction is crucial for businesses as it affects cash flow and pricing. Zero-rated businesses can reclaim VAT, making it advantageous, while exempt businesses bear the cost of input VAT in their pricing.