The VAT on £10,000 at the standard 20% rate is £2,000.00, making a gross total of £12,000.00.
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If £10,000 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £10,000.00 |
| VAT (20%) | £2,000.00 |
| Gross | £12,000.00 |
If £10,000 is the gross price (including 20% VAT), removing the VAT gives a net of £8,333.33 and VAT of £1,666.67 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £10,000 net gives £500.00 VAT and a gross of £10,500.00.
Adding 20% VAT to £10,000 gives £2,000.00 of VAT and a gross total of £12,000.00.
£10,000 plus 20% VAT is £12,000.00.