The VAT on £1,000 at the standard 20% rate is £200.00, making a gross total of £1,200.00.
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If £1,000 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £1,000.00 |
| VAT (20%) | £200.00 |
| Gross | £1,200.00 |
If £1,000 is the gross price (including 20% VAT), removing the VAT gives a net of £833.33 and VAT of £166.67 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £1,000 net gives £50.00 VAT and a gross of £1,050.00.
Adding 20% VAT to £1,000 gives £200.00 of VAT and a gross total of £1,200.00.
£1,000 plus 20% VAT is £1,200.00.