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 £73 Plus VAT. Now if we use the standard VAT Rate(20%) then the Gross Amount would be £87.60 and the VAT amount would be £14.60.
| Initial Value | VAT Rate | VAT Amount | Gross Amount |
|---|---|---|---|
| £73 | 20% | £14.60 | £87.60 |
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20%
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Net Amount: £73.00
VAT: £14.60 (20.00% of net amount)
Gross Amount: £87.60
Difference (Gross - Net): £14.60
History 1 - Net Amount: £73.00, VAT: £14.60 (20.00% of net amount), Gross Amount: £87.60, Difference (Gross - Net): £14.60
73 Plus VAT
VAT Added Gross amount = Initial Price x (1 + VAT percentage)
Simply:- £87.60 = £73 x (1 + 20%) or £73 x (1 + 20/100)
Let me tell you another way to calculate £87.60
For example: Let’s say a product costs £73 before VAT.
- £73 (product cost) x 20% (VAT rate) = £14.60
- So the total price with VAT is: £73 (product cost) + £14.60 (VAT) = £87.60
