When a sale is described as being VAT inclusive, this means that the VAT at a rate of 20% on that sale is calculated by dividing the VAT inclusive figure by 6.

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When a sale is described as VAT inclusive, the total amount paid includes VAT at the specified rate. To find the VAT amount from a VAT inclusive price at a 20% rate, you divide the total amount by 6. This is because 20% VAT is 1/5th of the VAT-exclusive price, but when included in the total, the VAT represents 1/6th of the VAT-inclusive price.

When a Sale Is Described as Being VAT Inclusive, This