## Adding VAT

Adding VAT to an amount is very easy. All you need to do is multiply your Nett amount by your ratio.

For example, if you are selling a chair for £150 Nett and need to add 20% VAT to get the Gross price including VAT, you use:

150 **x** 1.20 = 180

So the Gross amount including VAT is £180.

## Removing VAT

Taking VAT off an amount is just as easy (providing you have a calculator, I'm terrible at division). All you do is divide your Gross amount by your ratio.

For example, if you bought a table for a Gross price of £180 including 20% VAT and want to work out the Nett price excluding VAT, you do this:

180 **÷** 1.20 = 150

So the Nett amount excluding VAT is £150.

## Finding the VAT amount from a Gross amount

Sometimes you have a total Gross amount and need to find the amount of VAT it contains. The simplest method is to find the Nett amount (see *Removing VAT* above) and take the Nett away from the Gross.

Going back to our example, if you bought a table for a Gross price of £180 including 20% VAT and want to find the amount of VAT included in the price, you do this:

180 **÷** 1.20 = **150**

and then

180 **-** **150** = 30

So the amount of VAT in this case is £30.

Now you know all about calculating VAT. It's not rocket science, but i'm sure you'll agree that using our VAT Calculator is even easier.