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 £871 Plus VAT. Now if we use the standard VAT Rate(20%) then the Gross Amount would be £1,045.20 and the VAT amount would be £174.20.
| Initial Value | VAT Rate | VAT Amount | Gross Amount |
|---|---|---|---|
| £871 | 20% | £174.20 | £1,045.20 |
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Net Amount: £871.00
VAT: £174.20 (20.00% of net amount)
Gross Amount: £1045.20
Difference (Gross - Net): £174.20
History 1 - Net Amount: £871.00, VAT: £174.20 (20.00% of net amount), Gross Amount: £1045.20, Difference (Gross - Net): £174.20
871 Plus VAT
VAT Added Gross amount = Initial Price x (1 + VAT percentage)
Simply:- £1,045.20 = £871 x (1 + 20%) or £871 x (1 + 20/100)
Let me tell you another way to calculate £1,045.20
For example: Let’s say a product costs £871 before VAT.
- £871 (product cost) x 20% (VAT rate) = £174.20
- So the total price with VAT is: £871 (product cost) + £174.20 (VAT) = £1,045.20
