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 £6 Plus VAT. Now if we use the standard VAT Rate(20%) then the Gross Amount would be £7.20 and the VAT amount would be £1.20.
| Initial Value | VAT Rate | VAT Amount | Gross Amount |
|---|---|---|---|
| £6 | 20% | £1.20 | £7.20 |
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20%
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Net Amount: £6.00
VAT: £1.20 (20.00% of net amount)
Gross Amount: £7.20
Difference (Gross - Net): £1.20
History 1 - Net Amount: £6.00, VAT: £1.20 (20.00% of net amount), Gross Amount: £7.20, Difference (Gross - Net): £1.20
6 Plus VAT
VAT Added Gross amount = Initial Price x (1 + VAT percentage)
Simply:- £7.20 = £6 x (1 + 20%) or £6 x (1 + 20/100)
Let me tell you another way to calculate £7.20
For example: Let’s say a product costs £6 before VAT.
- £6 (product cost) x 20% (VAT rate) = £1.20
- So the total price with VAT is: £6 (product cost) + £1.20 (VAT) = £7.20
