How to add VAT to a price
Go from a price before VAT to the price the customer pays. One sum for the VAT, and one sum that goes straight to the total.
Task 1Net, VAT and gross4 questions
VAT is a tax added to the price of most things a business sells. The standard rate is 20%.
- Net price
- the price before VAT
- VAT
- the tax, worked out as a percentage of the net price
- Gross price
- net plus VAT: what the customer pays
To find the VAT at 20%, multiply the net price by 0.2.
Worked example: a net price of £150. 150 × 0.2 = £30 of VAT.
Task 2Straight to the gross price2 questions
Task 3VAT on a whole invoice3 questions