The VAT on £2,000 at the standard 20% rate is £400.00, making a gross total of £2,400.00.
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If £2,000 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £2,000.00 |
| VAT (20%) | £400.00 |
| Gross | £2,400.00 |
If £2,000 is the gross price (including 20% VAT), removing the VAT gives a net of £1,666.67 and VAT of £333.33 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £2,000 net gives £100.00 VAT and a gross of £2,100.00.
Adding 20% VAT to £2,000 gives £400.00 of VAT and a gross total of £2,400.00.
£2,000 plus 20% VAT is £2,400.00.