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 £80 Plus VAT. Now if we use the standard VAT Rate(20%) then the Gross Amount would be £96.00 and the VAT amount would be £16.00.
| Initial Value | VAT Rate | VAT Amount | Gross Amount |
|---|---|---|---|
| £80 | 20% | £16.00 | £96.00 |
Check Out our VAT Calculator for accurate data
20%
Advertisement
Net Amount: £80.00
VAT: £16.00 (20.00% of net amount)
Gross Amount: £96.00
Difference (Gross - Net): £16.00
History 1 - Net Amount: £80.00, VAT: £16.00 (20.00% of net amount), Gross Amount: £96.00, Difference (Gross - Net): £16.00
80 Plus VAT
VAT Added Gross amount = Initial Price x (1 + VAT percentage)
Simply:- £96.00 = £80 x (1 + 20%) or £80 x (1 + 20/100)
Let me tell you another way to calculate £96.00
For example: Let’s say a product costs £80 before VAT.
- £80 (product cost) x 20% (VAT rate) = £16.00
- So the total price with VAT is: £80 (product cost) + £16.00 (VAT) = £96.00
