💰 VAT Calculator 2025

Free Value Added Tax Calculator for UK, Italy & France

✓ Current 2025 VAT Rates ✓ Add/Remove VAT ✓ GBP & EUR Support ✓ Instant Results

Choose Your Country for VAT Calculation

Select your country to calculate VAT with current 2025 rates. Add VAT to net amounts or remove VAT from gross amounts.

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VAT Rates Information

Rate Type VAT Rate
Select a country to view rates -
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VAT Calculator Features

Multi-Country Support
UK, Italy, France VAT systems
Current VAT Rates
Updated for 2025
Add/Remove VAT
Both calculation types
Multi-Currency
GBP and EUR support
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Complete VAT Guide 2025

Understanding Value Added Tax (VAT)

Value Added Tax is a consumption tax that's applied to goods and services at each stage of production and distribution. Unlike sales tax, which is only collected at the point of sale, VAT is collected incrementally throughout the supply chain based on the value added at each stage.

How VAT Works

Manufacturer

Pays VAT on raw materials, charges VAT on finished goods

Retailer

Pays VAT on wholesale purchases, charges VAT to consumers

Consumer

Pays final VAT amount, cannot reclaim VAT

VAT Rates Comparison 2025

Country Standard Rate Reduced Rates Registration Threshold
🇬🇧 United Kingdom 20% 5%, 0% £85,000
🇮🇹 Italy 22% 10%, 5%, 4% €65,000 (services) / €85,000 (goods)
🇫🇷 France 20% 10%, 5.5%, 2.1% €85,800 (goods) / €34,400 (services)

VAT Calculation Methods

Adding VAT

When you need to add VAT to a net (excluding VAT) amount:

Gross Amount = Net Amount × (1 + VAT Rate)

Example: £100 × 1.20 = £120 (20% VAT)

  • • Use when pricing products
  • • For invoice calculations
  • • Setting retail prices

Removing VAT

When you need to extract VAT from a gross (including VAT) amount:

Net Amount = Gross Amount ÷ (1 + VAT Rate)

Example: £120 ÷ 1.20 = £100 (VAT = £20)

  • • For expense analysis
  • • VAT return calculations
  • • Accounting purposes

VAT for Businesses

Registration Benefits

  • • Reclaim VAT on business expenses
  • • Professional credibility
  • • Trade with other VAT businesses
  • • Access to VAT schemes

Compliance Requirements

  • • Regular VAT returns
  • • Accurate record keeping
  • • VAT invoice requirements
  • • Digital reporting (MTD)

Common Mistakes

  • • Incorrect rate application
  • • Missing registration deadlines
  • • Poor record keeping
  • • Late return submissions

VAT Calculator FAQ

What is the difference between adding and removing VAT?

Adding VAT means calculating the total price including VAT from a net amount. Removing VAT means extracting the net amount from a gross price that already includes VAT.

What are the current VAT rates for 2025?

UK: 20% standard rate, Italy: 22% standard rate, France: 20% standard rate. Each country also has reduced rates for specific goods and services.

Is this VAT calculator free to use?

Yes, our VAT calculator is completely free with no registration required. Calculate VAT for UK, Italy, and France instantly with current 2025 rates.

Which currencies does the calculator support?

The calculator supports GBP (British Pounds) for UK calculations and EUR (Euros) for Italy and France calculations, automatically switching based on your country selection.

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