The VAT on £15,000 at the standard 20% rate is £3,000.00, making a gross total of £18,000.00.
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If £15,000 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £15,000.00 |
| VAT (20%) | £3,000.00 |
| Gross | £18,000.00 |
If £15,000 is the gross price (including 20% VAT), removing the VAT gives a net of £12,500.00 and VAT of £2,500.00 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £15,000 net gives £750.00 VAT and a gross of £15,750.00.
Adding 20% VAT to £15,000 gives £3,000.00 of VAT and a gross total of £18,000.00.
£15,000 plus 20% VAT is £18,000.00.