Online VAT Calculator

Our VAT calculator can help you add VAT to your sales invoices or show the breakdown of net and VAT if it isn’t shown on an invoice or receipt you have for an expense.

Or, calculate VAT automatically by using Bokio accounting software. Bookkeeping, invoices, expenses and submitting your VAT Return - Bokio does it all.

Manage your VAT

How much is VAT?

Standard rate VAT currently stands at 20% in the UK.

5% VAT is the reduced rate which is applied to some goods or services. 0% VAT can also be applied to others, and some items can be outside the scope of VAT like financial transactions or postage stamps.

When can you charge customers VAT?

VAT is added to items sold, and works as a business transactions tax. Charging VAT is required as a member of the EU. However, to make it more tricky each member of the EU has a different VAT rates and rules.

VAT on EU purchases

When invoicing to countries outside the UK, there are normally different rules that will need to be applied. For example, other members of the EU may be subject to reverse charge if your customer is also VAT registered. The HMRC website has a list of what you need to know about selling goods to EU businesses. 

When to become VAT registered

If your business has a turnover of over £85,000 a year then it is compulsory to register. If your business has a turnover less than that, you can still voluntarily register for VAT. To do so, you can visit the HMRC website. Registering for VAT voluntarily has benefits for your business:

• You may be able to receive VAT refunds of purchases if your input VAT is greater than your sales output VAT
• It makes your business appear more professional if you’re VAT registered, which may help when trying to gain customers

When to submit your VAT return and how to do it

Now you know how much VAT you have to pay, your next step is to submit your VAT Return to HMRC.

When you do your bookkeeping with Bokio, you can submit your automated VAT Return in just a few clicks. It’s as simple as recording your transactions, connecting your account to HMRC and submitting your VAT Return. Watch the video below to find out more about how to submit your Making Tax Digital VAT Return.

VAT Returns are normally submitted quarterly, but you can also opt to prepare these on a monthly basis or even on an annual basis. The deadline for your period will normally be 1 month and 7 days after the period for the VAT Return.

Making Tax Digital for VAT

If you’re registered for VAT then you will need to comply with the new Making Tax Digital regulations if you have a turnover of over £85,000. This means that businesses need to digitally record their VAT transactions and submit their VAT Returns using an MTD software.

With Bokio’s Making Tax Digital software, you can be MTD compliant. For more information, you can read our guide to Making Tax Digital here.

Did you know?

The UK has some interesting rules on what is and isn’t VAT exempt, especially when it comes to food. Here are a few examples:

• Cakes are VAT exempt, but biscuits are VAT chargeable
• Gingerbread men are VAT exempt with chocolate spot eyes, but become VAT payable if they have any additions, like buttons
• Frozen foods are ‘zero-rated’, but you pay VAT on products like ice cream, sorbets or frozen yoghurt

Do your accounting with Bokio

With Bokio accounting software, you can do your bookkeeping, invoicing, and manage your finances in the same place. We have everything you need to help you prepare for your Self Assessment tax return, submit your VAT Return for Making Tax Digital and keep the right financial records. If you need an extra hand, we can help you find an accountant to work with.

Accounting is kept simple with Bokio, so you have more time to spend running your business.

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