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 £60 Plus VAT. Now if we use the standard VAT Rate(20%) then the Gross Amount would be £72.00 and the VAT amount would be £12.00.
| Initial Value | VAT Rate | VAT Amount | Gross Amount |
|---|---|---|---|
| £60 | 20% | £12.00 | £72.00 |
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20%
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Net Amount: £60.00
VAT: £12.00 (20.00% of net amount)
Gross Amount: £72.00
Difference (Gross - Net): £12.00
History 1 - Net Amount: £60.00, VAT: £12.00 (20.00% of net amount), Gross Amount: £72.00, Difference (Gross - Net): £12.00
60 Plus VAT
VAT Added Gross amount = Initial Price x (1 + VAT percentage)
Simply:- £72.00 = £60 x (1 + 20%) or £60 x (1 + 20/100)
Let me tell you another way to calculate £72.00
For example: Let’s say a product costs £60 before VAT.
- £60 (product cost) x 20% (VAT rate) = £12.00
- So the total price with VAT is: £60 (product cost) + £12.00 (VAT) = £72.00
