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 £38 Plus VAT. Now if we use the standard VAT Rate(20%) then the Gross Amount would be £45.60 and the VAT amount would be £7.60.
| Initial Value | VAT Rate | VAT Amount | Gross Amount |
|---|---|---|---|
| £38 | 20% | £7.60 | £45.60 |
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20%
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Net Amount: £38.00
VAT: £7.60 (20.00% of net amount)
Gross Amount: £45.60
Difference (Gross - Net): £7.60
History 1 - Net Amount: £38.00, VAT: £7.60 (20.00% of net amount), Gross Amount: £45.60, Difference (Gross - Net): £7.60
38 Plus VAT
VAT Added Gross amount = Initial Price x (1 + VAT percentage)
Simply:- £45.60 = £38 x (1 + 20%) or £38 x (1 + 20/100)
Let me tell you another way to calculate £45.60
For example: Let’s say a product costs £38 before VAT.
- £38 (product cost) x 20% (VAT rate) = £7.60
- So the total price with VAT is: £38 (product cost) + £7.60 (VAT) = £45.60
