Scotland Reverse Value Added Tax Calculator

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Calculator published on: 2023-05-01 16:17:49

Calculator last reviewed: 2023-05-01 17:25:05

Rating: ★★★★★ [ No Votes yet, be the first ]

Reference(s) HMRC

VAT Rates last updated: 2023-05-01 17:18:11 [Update Rates]

Currency British Pound Sterling [ GBP ] [ £ ]

Introduction

The Scotland Reverse VAT Calculator provides quick VAT calculations and, optionally, a detailed VAT table which includes multiple VAT entries and calculations. VAT is calculated as a percentage of the total sale price at the point of sale, this amount is then deducted to provide the value of the goods (if you wish to add VAT to the value of the goods, please use the VAT Calculator for Scotland). The quick reverse VAT calculation is for those who wish to calculate how much VAT is added to a specific product or service. The advanced calculator option includes the same calculation overview and, in addition, produces a table of VAT transactions with details on the VAT amount for each product/service and the total cost of the goods/services before and after VAT is applied.

On this page, discover:

1. The formula for calculating reverse VAT
2. Instructions: How to use the Scotland Reverse VAT Calculator
3. Detailed reverse VAT Calculations
4. Latest Scotland VAT Rates and Thresholds

Reverse VAT Formula for Scotland

As we mentioned in the introduction, "VAT is calculated as a percentage of the value of the goods at the point of sale, this amount is then added to provide the total sale price". VAT is therefore a transactional tax as the tax is only incurred at the point of sale, this is the same for goods and services. If we consider the calculation from the perspective of the goods or service, we can define the formula for calculating VAT in Scotland as having four components, there are:

1. The NET sale amount of the goods/service at the point of sale (a)
2. The VAT rate that is applicable to the goods/service (b)
3. The amount of VAT that is chargeable on the goods/service (c)
4. The GROSS sale amount of the goods/service at the point of sale (d)

You may have noticed that we defined a letter for each of the four components or VAT calculation, this letter is shown in a bracket. We will use this letter to create our reverse VAT formula, using the letters instead of the fully worded VAT component so that our reverse VAT formula is in a nice user friendly format.

Our aim when calculating revrse VAT is to calculate the "the NET sale amount of the goods/service at the point of sale" and the "The amount of VAT that is chargeable on the goods/service", we can do this using the following formula:

You may have noticed that in our formula we divide "the VAT rate that is applicable to the goods/service (b)" by 100, this is to allow us to calculate the written percentage as a mathematical percentage amount. For example, 35% is equal to 0.35 when completing mathematical computations.

Now that we have calculated "The amount of VAT that is chargeable on the goods/service (c)" we can calculate the "The NET sale amount of the goods/service at the point of sale (a)" using the following formula:

As you can see from this very simple formula, we calculate "the NET sale amount of the goods/service at the point of sale (a)" by subtracting "the amount of VAT that is chargeable on the goods/service (c)" from "the GROSS sale amount of the goods/service at the point of sale (d)" that we calculated with the previous reverse VAT formula.

Instructions: How to use the Scotland Reverse VAT Calculator

There are two parts to these instructions, we explain the general features of our tax calculators in these instructions, below we discuss the instructions for using the Scotland Reverse VAT Calculator.

Scotland Reverse VAT Calculator - Quick Calculation Instructions

The quick Reverse VAT calculation provides the results below the calculator and requires the minimum input to calculate the VAT due on a product or service.

1. Enter the GROSS Value / Price of the product or service.
2. Select the VAT rate applicable for the product service.
3. Click on the Calculate button.

Scotland Reverse VAT Calculator - Detailed Calculation Instructions

The detailed reverse VAT calculation allows you to create a table of results for multiple products and/or services that are subject to VAT. The results are displayed for each VAT calculation as we demonstrated with the quick VAT calculation method, with the detailed Reverse VAT Calculator you have the option to add the results to a VAT table which provides the total VAT costs, NET sale amount and GROSS sale amount.

1. To use the detailed Reverse VAT Calculator and tools, click on the Detailed Calculation icon in the tax calculator ribbon bar
2. Enter the Description of the product / service subject to VAT in Scotland.
3. Enter the GROSS Value / Price of the product or service.
4. Select the VAT rate applicable for the product service.
5. Enter the total amount of Units Purchased/Sold that you wish to reverse calculate VAT on.
6. Click on the Calculate + add to table button.

The detailed reverse VAT calculations will then be displayed under the calculator, in addition, the results will be added to the Reverse VAT Calculation Tables. You have the option to remove VAT entry rows as required by clicking on the delete button.

Scotland VAT Rates for 2023

The vat rates for Scotland were last updated on 2023-05-01 17:18:11. You can review the full tax tables for Scotland here where you can also report any tax rate or tax threshold changes which require attention or alteration.