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 £97 Plus VAT. Now if we use the standard VAT Rate(20%) then the Gross Amount would be £116.40 and the VAT amount would be £19.40.
| Initial Value | VAT Rate | VAT Amount | Gross Amount |
|---|---|---|---|
| £97 | 20% | £19.40 | £116.40 |
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Net Amount: £97.00
VAT: £19.40 (20.00% of net amount)
Gross Amount: £116.40
Difference (Gross - Net): £19.40
History 1 - Net Amount: £97.00, VAT: £19.40 (20.00% of net amount), Gross Amount: £116.40, Difference (Gross - Net): £19.40
97 Plus VAT
VAT Added Gross amount = Initial Price x (1 + VAT percentage)
Simply:- £116.40 = £97 x (1 + 20%) or £97 x (1 + 20/100)
Let me tell you another way to calculate £116.40
For example: Let’s say a product costs £97 before VAT.
- £97 (product cost) x 20% (VAT rate) = £19.40
- So the total price with VAT is: £97 (product cost) + £19.40 (VAT) = £116.40
