The VAT on £1,500 at the standard 20% rate is £300.00, making a gross total of £1,800.00.
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If £1,500 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £1,500.00 |
| VAT (20%) | £300.00 |
| Gross | £1,800.00 |
If £1,500 is the gross price (including 20% VAT), removing the VAT gives a net of £1,250.00 and VAT of £250.00 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £1,500 net gives £75.00 VAT and a gross of £1,575.00.
Adding 20% VAT to £1,500 gives £300.00 of VAT and a gross total of £1,800.00.
£1,500 plus 20% VAT is £1,800.00.