The VAT on £1,200 at the standard 20% rate is £240.00, making a gross total of £1,440.00.
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If £1,200 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £1,200.00 |
| VAT (20%) | £240.00 |
| Gross | £1,440.00 |
If £1,200 is the gross price (including 20% VAT), removing the VAT gives a net of £1,000.00 and VAT of £200.00 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £1,200 net gives £60.00 VAT and a gross of £1,260.00.
Adding 20% VAT to £1,200 gives £240.00 of VAT and a gross total of £1,440.00.
£1,200 plus 20% VAT is £1,440.00.