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 £45 Plus VAT. Now if we use the standard VAT Rate(20%) then the Gross Amount would be £54.00 and the VAT amount would be £9.00.
| Initial Value | VAT Rate | VAT Amount | Gross Amount |
|---|---|---|---|
| £45 | 20% | £9.00 | £54.00 |
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20%
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Net Amount: £45.00
VAT: £9.00 (20.00% of net amount)
Gross Amount: £54.00
Difference (Gross - Net): £9.00
History 1 - Net Amount: £45.00, VAT: £9.00 (20.00% of net amount), Gross Amount: £54.00, Difference (Gross - Net): £9.00
45 Plus VAT
VAT Added Gross amount = Initial Price x (1 + VAT percentage)
Simply:- £54.00 = £45 x (1 + 20%) or £45 x (1 + 20/100)
Let me tell you another way to calculate £54.00
For example: Let’s say a product costs £45 before VAT.
- £45 (product cost) x 20% (VAT rate) = £9.00
- So the total price with VAT is: £45 (product cost) + £9.00 (VAT) = £54.00
