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 £74 Plus VAT. Now if we use the standard VAT Rate(20%) then the Gross Amount would be £88.80 and the VAT amount would be £14.80.
| Initial Value | VAT Rate | VAT Amount | Gross Amount |
|---|---|---|---|
| £74 | 20% | £14.80 | £88.80 |
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20%
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Net Amount: £74.00
VAT: £14.80 (20.00% of net amount)
Gross Amount: £88.80
Difference (Gross - Net): £14.80
History 1 - Net Amount: £74.00, VAT: £14.80 (20.00% of net amount), Gross Amount: £88.80, Difference (Gross - Net): £14.80
74 Plus VAT
VAT Added Gross amount = Initial Price x (1 + VAT percentage)
Simply:- £88.80 = £74 x (1 + 20%) or £74 x (1 + 20/100)
Let me tell you another way to calculate £88.80
For example: Let’s say a product costs £74 before VAT.
- £74 (product cost) x 20% (VAT rate) = £14.80
- So the total price with VAT is: £74 (product cost) + £14.80 (VAT) = £88.80
