VAT gets charged every time value is added as a product is made or a service is delivered. Now, let’s know what is the answer to £31 Plus VAT. Now if we use the standard VAT Rate(20%) then the Gross Amount would be £37.20 and the VAT amount would be £6.20.
| Initial Value | VAT Rate | VAT Amount | Gross Amount |
|---|---|---|---|
| £31 | 20% | £6.20 | £37.20 |
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20%
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Net Amount: £31.00
VAT: £6.20 (20.00% of net amount)
Gross Amount: £37.20
Difference (Gross - Net): £6.20
History 1 - Net Amount: £31.00, VAT: £6.20 (20.00% of net amount), Gross Amount: £37.20, Difference (Gross - Net): £6.20
31 Plus VAT
VAT Added Gross amount = Initial Price x (1 + VAT percentage)
Simply:- £37.20 = £31 x (1 + 20%) or £31 x (1 + 20/100)
Let me tell you another way to calculate £37.20
For example: Let’s say a product costs £31 before VAT.
- £31 (product cost) x 20% (VAT rate) = £6.20
- So the total price with VAT is: £31 (product cost) + £6.20 (VAT) = £37.20
