How to Calculate VAT in the U.K.
If you purchase goods or services while traveling in the European Union, then you must pay a value-added tax (VAT), which is a particular breed of consumption tax. In 2011, the European Union raised its VAT rate from 17.5 percent to 20 percent. Since the U.K. is one of the 27 member countries of the European Union, as of 2011, that means on every product you purchase there, you must pay an additional 20 percent.
Instructions
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1
Determine the purchase price of the item you are buying.
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2
Find out what the current rate of VAT in the U.K. is. As of March 2011, the standard rate is 20 percent.
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3
Multiply the price of what you are buying by the VAT rate.
