The VAT on £600 at the standard 20% rate is £120.00, making a gross total of £720.00.
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If £600 is the net price (excluding VAT), adding 20% VAT gives:
| Item | Amount |
|---|---|
| Net | £600.00 |
| VAT (20%) | £120.00 |
| Gross | £720.00 |
If £600 is the gross price (including 20% VAT), removing the VAT gives a net of £500.00 and VAT of £100.00 (the VAT is one sixth of the gross).
At the reduced 5% rate, adding VAT to £600 net gives £30.00 VAT and a gross of £630.00.
Adding 20% VAT to £600 gives £120.00 of VAT and a gross total of £720.00.
£600 plus 20% VAT is £720.00.