Working out your VAT

Featured Image for the working out your vat page

February 16, 2022

If you have a receipt that includes VAT but the supplier hasn’t split out the VAT how do you work out the VAT?

Just follow this quick calculation to work it out – assuming it’s 20% VAT!

To calculate the VAT divide the gross amount by 6.

To calculate the net amount multiply the gross amount by 5/6ths

Let’s look at an example: A gross invoice for £120.00

The VAT is £20 [£120.00 divided by 6]

The Net is £100 [£120 multiplied by 5/6ths]

You May Also Like…

Do you have a growth strategy?

In the vast landscape of business, having a remarkable product or service is undoubtedly a great starting point....