If you have a receipt which 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]