What is the difference between net price and gross price?

Answer 1

For when the VAT rate was 17.5%, to get the amount before VAT you needed to divide by 1.175

Now the UK VAT rate is 20%, you need to divide by 1.2

Example:

If the price before VAT was £100, and VAT is 20%, then the price after VAT is £120.

So to work it out backwards: If you know the price after VAT is £120 and you want to know the price before VAT: £120 divided by 1.2 = £100

Hope that helps.

Answer 2

The difference between net price and gross price is that gross price refers to the total cost while net price refers to the cost after deducting expenses. Expenses can be operating costs and such.