{"id":21828,"date":"2023-05-29T08:15:22","date_gmt":"2023-05-29T08:15:22","guid":{"rendered":"https:\/\/www.bluedotcorp.com\/blog\/how-to-check-a-vat-number-copy\/"},"modified":"2023-12-04T19:47:34","modified_gmt":"2023-12-04T19:47:34","slug":"remove-vat-from-price","status":"publish","type":"post","link":"https:\/\/www.bluedotcorp.com\/blog\/remove-vat-from-price\/","title":{"rendered":"How to Calculate Net Price without Value Added Tax (VAT)?"},"content":{"rendered":"

Value Added Tax (VAT) is a consumption-based tax placed on almost all goods and services sold by a business to other businesses and consumers. It\u2019s a consumption tax because consumers pay in full for the VAT while companies do not (they are reimbursed if registered for VAT). The amount paid is determined by a set percentage which varies depending on the country – as of 2023, it is<\/span> 20% in the UK<\/span><\/a> and <\/span>21% in Europe<\/span><\/a>.<\/span><\/p>\n

Companies that earn more than the annual turnover threshold of \u00a385,000 in the UK <\/span>have to register for VAT<\/a><\/span>, although companies below this limit are also welcome to register even though it\u2019s not mandatory.<\/span><\/p>\n

When you have registered for VAT as a business<\/a><\/span>, you don\u2019t ultimately pay VAT on your expenses, as you can claim them back when you submit your VAT return. However, once you\u2019re registered, you do have to add VAT to your own goods and services. Of course, some exemptions and rules affect which goods and services are charged the total VAT percentage of 20%, which ones are exempt, and which ones get a reduced VAT rate. There are also rules around when you can register for VAT and how often you submit a\u00a0<\/span>VAT return<\/span><\/a>.<\/span><\/p>\n

VAT affects the price of certain items because the exemptions and rules outlined above will affect how much VAT is charged on these items. Some will have the full 20% VAT added on, while others will only be charged 5% [<\/span>link to our blog with VAT exemptions<\/span>], and others won\u2019t get any VAT added on as they are either zero-rated or exempt.<\/span><\/p>\n

This is where it can get complicated trying to work out your VAT reclaim charges and how much you should charge for different products. Fortunately, this guide will talk you through the most important facts, and this <\/span>calculator<\/span> will help you quickly work out your VAT reclaim.<\/span><\/p>\n

Procedure to Remove VAT from Price<\/b><\/h2>\n

In some instances, you may need to remove VAT from the cost of your product or service. These include:<\/span><\/p>\n