The VAT on £100,000 at the standard 20% rate is £20,000.00, making a gross total of £120,000.00.
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If £100,000 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £100,000.00 |
| VAT (20%) | £20,000.00 |
| Gross | £120,000.00 |
If £100,000 is the gross price (including 20% VAT), removing the VAT gives a net of £83,333.33 and VAT of £16,666.67 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £100,000 net gives £5,000.00 VAT and a gross of £105,000.00.
Adding 20% VAT to £100,000 gives £20,000.00 of VAT and a gross total of £120,000.00.
£100,000 plus 20% VAT is £120,000.00.