AAT Level 2 Introduction to Bookkeeping Practice Test 2026 - Free Bookkeeping Practice Questions and Study Guide

VAT is added to the net price to give the gross amount, so gross = net × (1 + VAT rate). With a 20% rate, the gross value is 1.20 times the net value. To find the net value, divide the gross by 1.20. 240 ÷ 1.20 = 200. The VAT portion would be 240 − 200 = 40, which is 20% of the net price. So the net value is 200.