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 £642 Plus VAT. Now if we use the standard VAT Rate(20%) then the Gross Amount would be £770.40 and the VAT amount would be £128.40.
| Initial Value | VAT Rate | VAT Amount | Gross Amount |
|---|---|---|---|
| £642 | 20% | £128.40 | £770.40 |
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Net Amount: £642.00
VAT: £128.40 (20.00% of net amount)
Gross Amount: £770.40
Difference (Gross - Net): £128.40
History 1 - Net Amount: £642.00, VAT: £128.40 (20.00% of net amount), Gross Amount: £770.40, Difference (Gross - Net): £128.40
642 Plus VAT
VAT Added Gross amount = Initial Price x (1 + VAT percentage)
Simply:- £770.40 = £642 x (1 + 20%) or £642 x (1 + 20/100)
Let me tell you another way to calculate £770.40
For example: Let’s say a product costs £642 before VAT.
- £642 (product cost) x 20% (VAT rate) = £128.40
- So the total price with VAT is: £642 (product cost) + £128.40 (VAT) = £770.40
