VAT — Value Added Tax — is charged at 20% on most goods and services in the UK, with a reduced rate of 5% applying to things like home energy and children's car seats, and 0% on essentials such as food and children's clothing. Use "Add VAT" when you have a trade or net price and need to know what a customer will pay. Use "Remove VAT" when you have a VAT-inclusive price and need to separate out the tax — useful for reclaiming VAT or checking supplier invoices.
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