The VAT on £3,000 at the standard 20% rate is £600.00, making a gross total of £3,600.00.
If £3,000 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £3,000.00 |
| VAT (20%) | £600.00 |
| Gross | £3,600.00 |
If £3,000 is the gross price (including 20% VAT), removing the VAT gives a net of £2,500.00 and VAT of £500.00 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £3,000 net gives £150.00 VAT and a gross of £3,150.00.
Adding 20% VAT to £3,000 gives £600.00 of VAT and a gross total of £3,600.00.
£3,000 plus 20% VAT is £3,600.00.